Tesla held a shareholders meeting this morning in Thailand, with the main agenda being the approval of compensation for Elon Musk, the CEO, and founder of Tesla, as announced in 2018. This harks back to a board resolution in 2018 approving a special compensation plan for Musk based on Tesla’s business and financial goals. The shareholders also approved this compensation plan.
Tesla stated that within just 5 years, by 2023, Elon Musk could lead the company to achieve its set goals, such as a stock price return of over 1,100%, going from a $2 billion loss per year to a profit of $15 billion, increasing car deliveries to 1.8 million vehicles, and helping reduce global carbon dioxide emissions by tens of millions of tonnes.
However, the Delaware State Court issued an order earlier this year for Tesla to revoke this compensation plan for Elon Musk, whose shares in the company were valued at $56 billion, citing it as excessive. The board at that time was influenced by Musk’s power, which led to the shareholder meeting to seek approval for the compensation plan again to use as evidence in court.
While the shareholders endorsed the compensation plan for Elon Musk, another approved topic was the relocation of Tesla’s headquarters from Delaware to Texas. The outcome of the Delaware court’s future orders remains to be seen.
During one shareholder meeting, Elon Musk expressed his gratitude by saying, “I love you guys.”
TLDR: Tesla shareholders approved Elon Musk’s compensation plan, despite an earlier court order to revoke it, with the company also relocating its headquarters from Delaware to Texas. Elon Musk expressed his appreciation for shareholders.
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