Tesla has asked its shareholders to reaffirm their approval of CEO Elon Musk’s $56 billion compensation, after it was rejected by a Delaware judge at the start of this year.
The payment was set in 2018.
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A letter by Board Chair Robyn Denhold, included along with the SEC filing, said that ratification would restore the EV maker’s ‘stockholder democracy.’
“Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value.”
They added: “That strikes us — and the many stockholders from whom we already have heard — as fundamentally unfair.”
In addition to approving Musk’s $56 billion pay package, Tesla’s 2024 Annual Meeting will also ask shareholders to vote to approve moving Tesla’s state of incorporation from Delaware to Texas, where it already has a gigafactory.
In January, the judge called Musk’s compensation “an unfathomable sum”, to which he responded on social media: “Never incorporate your company in the state of Delaware. I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters”.
