Billionaire’s pay: Tesla shareholders to vote again on Musk’s compensation

Tesla will let its shareholders vote again on Elon Musk’s massive pay package, which was previously overturned by a court. The car maker announced its plans for another lot in one Declaration of power of attorney filed by the US Securities and Exchange Commission (SEC) on Wednesday.

“Because the Delaware court rejected the decision, Elon Musk was not compensated for his work at Tesla over the past six years, which helped create significant growth and value for shareholders,” it says in a statement of power of attorney. It continues: “This strikes us – and many shareholders we have heard from – as fundamentally unfair and inconsistent with the will of the shareholders who voted for it.”

Tesla said when 73 percent of shareholders voted for the pay package in 2018, it was a “big risk” aimed at “unprecedented growth.” But in January, a Delaware judge ruled in favor of a Tesla shareholder who argued in a lawsuit that Musk’s pay was excessive.

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The compensation included Musk receiving stock options based on financial goals. He played a key role in the rise of the Tesla boss to become the richest man in the world. He is now third in the Bloomberg Billionaires Index, behind Amazon founder Jeff Bezos and luxury mogul Bernard Arnault.

When the compensation was declared invalid in court, it was worth 55 billion dollars (€51.7 billion) – die „New York Times“ However, reports that it is now only estimated at 47 billion dollars (€ 44 billion).

A second shareholder vote is scheduled to take place at the company’s annual meeting in June, according to a proxy filing.

Read the original article in English here.