SAN FRANCISCO — Tesla shareholders re-approved Elon Musk’s controversial 2018 pay package by a wide margin, Musk posted on X Wednesday night, appearing to resolve an uncertainty that has loomed over his future with the company.
A Delaware judge invalidated the package, worth as much as $56 billion earlier this year, arguing that the process that led to the deal had been unfair. As part of the deal, Musk was granted stock options as Tesla hit certain valuation milestones, accumulating massive amounts of shares that led to a record pay deal and played a hand in making Musk the richest person in the world.
Hmm, looks like we’re in the “lawsuits” stage of the game. I don’t expect that Elon can keep his pay package, so its going to go back to the Delaware Judge IIRC.
The interesting legal maneuver here is with regards to the Texas move. If Shareholders approve the move to Texas, it’d become a Texas vs Delaware issue. But… there’s legal precedent saying that such a move would require 66% of the vote instead of just 50%. I imagine that this alone (the threshold of “move”) will itself be subject to debate, and likely end up in Delaware court again before they’re allowed to move out. Or maybe not? Legal stuff can be quite sharp.
In any case, stay tuned for tonight as the official announcements come out. Things are going to be interesting!!