Tesla votes to confirm Musk’s massive $56 billion payout

Tesla will ask the shareholder meeting to restore $56 billion compensation package awarded to CEO Elon Musk in 2018 but overturned by a Delaware judge. The vote will be held ahead of Tesla’s quarterly outlook announcement next week. Kathaleen McCormick, a Delaware Court judge, described the payment made by the board to the entrepreneur as an unfair amount for the shareholders.

Tesla also said it will ask shareholders to approve moving the company’s headquarters from Delaware to Texas. Musk had proposed the move after his payments were declared illegal. Musk’s compensation package was revoked after a shareholder took the company to court claiming that Musk and not the board of directors controlled the company.

The vote risks raising new controversies about Tesla, which, it should be noted, is preparing to lay off nearly 14,000 workers. Musk himself contacted internal communications. “We have conducted a thorough review of the organization and made the difficult decision to reduce our workforce by more than 10% worldwide,” wrote the entrepreneur who employs 140,000 people at Tesla.

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