Elon Musk secures record pay: Tesla moving to Texas

Tesla shareholders have voted to approve a pay package for Elon Musk, who serves as the company's CEO, and to move the company's headquarters to Texas.

In 2018, it was decided that Musk would earn 303 million stock options if he reached certain targets. These targets were met in 2020, but the payment could not be executed due to legal processes.

It was stated that the amount to be paid to Musk, depending on Tesla's stock price, could reach up to 56 billion dollars. 

This will be the highest amount ever received by a board chairman in the US. 

The package, which is worth approximately 300 times what the highest-paid executive in the US earned last year, received support from 73% of the shareholders who voted six years ago.

The board of directors stated that Musk deserves this package because Tesla reached its ambitious goals under his leadership and that it is necessary for his dedication to the company.

This situation has led to concerns that the board of directors is overly dependent on Musk.

Addressing the cheering crowd after the meeting, Musk said, "I love you," and expressed that they have the "most incredible shareholder community."

The company's shares rose 3 percent following the decision.

A judge in Delaware had previously canceled this package as a result of a lawsuit filed by a small shareholder of the company.

In a ruling issued earlier this year, Judge Kathaleen McCormick stated that the amount was "unfair" and concluded that the determination of the package by a board of directors close to Musk was problematic.

Dan Ives, an analyst at the US-based investment bank Wedbush Securities, said this decision shows investors' confidence in Musk and reduces the threat of Musk leaving the company:

"If this proposal had failed, many bad scenarios could have occurred, including Musk stepping down as Tesla's CEO.”

The vote is not binding. Furthermore, it is unclear whether the court's decision will be invalidated by this vote.

News Source: 12punto