Tesla shareholders vote to give Elon Musk pay package worth $56bn

Shareholders in Tesla voted to award CEO Elon Musk a share package worth about $56bn, reports the BBC, and to move the company's headquarters to Texas, where courts are less likely to interfere. The deal sets a world record and represents an enormous financial windfall for a man already among the world's richest.

The deal is worth more than 3,000 times what the top-earning boss in the US made last year. However, the vote is not binding and legal experts have said it is not clear if the court that blocked the deal will accept the re-vote and allow the company to restore the pay package. …"It's a pretty ringing endorsement," said car industry analyst Karl Brauer. Mr Musk got more than enough shareholder support "to justify the package," he added. The company did not immediately disclose the margin of the vote.

The pay package's value shifts with the stock price, but is more than the company has made in net profit in its entire existence, about three times the company's 2023 gross profits, and more than the entire market value of General Motors. How can a CEO award himself such a bonus? It's simple: he controls the board and many shareholders are Elon fans who aren't particularly rational about it. Musk has threatened to leave. And while Tesla's stock is down to less than half of its $422 high, early investors have still made a lot on it.

The Texas move is because Delaware, where Tesla is currently headquartered, had previously blocked the deal.

Tesla investors back record-breaking Musk pay deal [BBC News]

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