Tesla Seeks Shareholder Approval for Musk's $56 Billion Pay Deal Again
Tesla Inc. has announced plans to seek shareholder approval to reconfirm the compensation package for CEO Elon Musk, which was previously voided by a Delaware court. The court had ruled against the $56 billion package, with the judge characterizing the amount as excessively large and unfair to shareholders. In response to this legal decision, Tesla is presenting the package for ratification again.
In addition to addressing Musk's compensation, Tesla is proposing a shift in its state of incorporation from Delaware to Texas. This corporate move will also be put to a vote at the upcoming annual meeting scheduled for June 13.
The news comes amidst Tesla's report of lower-than-expected sales for the first quarter. Consequently, the company is planning to reduce its workforce by approximately 10% in an effort to cut costs. Shares of Tesla, the world's most valuable automaker, saw a slight increase of 1% in pre-market trading following the announcement of these corporate governance matters.
