Tesla’s shareholders have approved (again) CEO Elon Musk’s $56 billion compensation in what many will see as an endorsement of his leadership.
Musk had campaigned heavily with Tesla’s individual shareholders for support for the huge payout, estimated at around $56bn, depending on the Tesla share price. The multi-year compensation plan gives Musk rights to roughly 300 million shares, which amounts to around a 10% stake in the company.
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However, Reuters noted that Musk could still face a legal fight to convince a Delaware (where Tesla the company is registered) judge who invalidated the pay package back in January.
Kathaleen McCormick of Delaware’s Court of Chancery wrote in a January court ruling: “The incredible size of the biggest compensation plan ever – an unfathomable sum – seems to have been calibrated to help Musk achieve what he believed would make ‘a good future for humanity’.”
According to Reuters, Musk has previously said the money would be used to finance interplanetary travel. “It’s a way to get humanity to Mars,” he reportedly said. “So Tesla can assist in potentially achieving that.”
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