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$56 billion: Tesla will re-present to its shareholders Elon Musk’s huge compensation plan canceled in court

Tesla boss Elon Musk’s compensation plan, estimated at $56 billion, was canceled by the courts at the end of January. The company’s board of directors will re-propose it to shareholders.

Tesla’s board of directors will re-present to its shareholders the enormous compensation plan of its boss, Elon Musk, which was judicially canceled at the end of January, at its next general meeting scheduled for June 13.

“The board of directors supports this compensation plan. We believed in it in 2018, asking Elon to pursue notable goals to grow the company. You, as shareholders, also believed in it in 2018, when you overwhelmingly approved it,” he argues the car manufacturer’s board of directors. in preparatory documents published Wednesday.

“Time and results have only demonstrated the wisdom of our judgment,” adds Tesla’s board of directors.

“The largest compensation plan ever awarded”

At the end of January, a judge in a court in the state of Delaware, in the eastern United States, ruled in favor of a shareholder of the automaker who requested the cancellation of this plan granted in 2018.

This shareholder criticized Elon Musk, Tesla and some members of the board of directors for having improperly authorized in 2018 “the largest compensation plan ever granted to an executive,” estimated at $56 billion.

The judge then considered that the shareholders had received “erroneous” and “misleading” information about the board of directors and the remuneration committee, before the general meeting at which the plan was approved.

In documents published on Wednesday, the board of directors also indicated that it would put to a vote of shareholders the transfer of Tesla’s registration from the state of Delaware to Texas, in accordance with what its boss had already announced.

Author: MC with AFP
Source: BFM TV

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