The result, announced on Thursday, comes as the billionaire tycoon fights to retain the largest-ever compensation package granted to an executive at a US-listed company.
The result is a victory for Musk and the Tesla board after they ardently campaigned for shareholders to approve the deal. It could serve as a rebuttal to the judge’s ruling that struck down the award – making it easier for Tesla’s board to argue that shareholders were properly informed about the payment package, and the board members’ ties to Musk, before casting their votes.
The vote does not automatically mean that Musk will receive the money, however, and there are likely to be further disputes. There are still numerous legal arguments around whether the board can be considered independent, and whether the package can be considered fair after the judge ruled otherwise.
Tesla originally devised Musk’s payment package in 2017, setting conditions for the CEO to receive 12 different tranches of stock options depending on whether the company hit certain revenue and market targets. Shareholders approved that package by a wide margin in 2018, but one investor filed a suit claiming that the board had been misleading and the package was unfair.
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Source: GuardianAus - 🏆 1. / 98 Read more »