Tesla shareholders have voted to make Texas the company’s legal base and reinstitute Elon Musk’s multi-billion dollar compensation package.
Musk took the stage last Thursday at a shareholder meeting, dancing and thanking the shareholders who supported the measures.
“We have the most awesome shareholder base, I mean, it’s just incredible,” Musk exclaimed.
At Tesla’s peak share price in 2021, Musk’s compensation was valued at just under $56 billion, but according to The Texan, it has since declined to about $50 billion.
As The Dallas Express previously reported, a shareholder’s legal complaint against Tesla had brought its affairs before a Delaware judge, Chancellor Kathaleen McCormick, earlier this year. McCormick struck down a proposed compensation package that would have awarded Musk $55.8 billion for meeting key company growth targets.
Alongside calling the massive financial package for Musk unfair, the plaintiff claimed that Tesla’s board of directors was not disclosing vital information to shareholders, as reported by The Texan.
The recent vote by shareholders will allow Musk to petition for the Delaware judge to reconsider her decision, according to The Wall Street Journal. Nevertheless, the judge’s ruling has prompted ire from Musk, who took to X to tell others to “[n]ever incorporate your company in the state of Delaware” before deliberating Tesla’s move to the Lone Star State.
In a poll he launched among X users, 87.1% of votes favored the move to Texas. Shareholders officially approved the proposal at the latest meeting.
Musk has made the Lone Star State home to SpaceX, Tesla’s new lithium refinery, and the company’s Gigafactory Texas. The Tesla CEO also has plans to build a new school focused on STEM in Austin in addition to announcing plans to construct a company town for his employees, as previously reported by DX.
Tesla’s headquarters were moved to Austin in late 2021 due to the restrictions placed on businesses in California during the COVID-19 lockdowns.