Tesla has recently launched a website aimed at convincing shareholders to reinstate CEO Elon Musk’s $55 billion compensation plan after a judge found that the company’s board had misrepresented the package. The judge raised concerns about governance issues surrounding the compensation plan and ultimately rescinded it.
Although shareholders had previously approved the plan, it was revoked by the court due to irregularities in how it was negotiated. The judge noted that Musk, who already owned more than 20% of Tesla, was in control of both the company and the board, leading to questions about the need for such a high compensation package.
Tesla is now asking shareholders to vote on moving the state of incorporation to Texas and to re-vote on Musk’s compensation plan. The website argues that the plan was aligned with shareholders’ interests and successfully achieved its goals.
The board did not directly negotiate the deal proposed by Musk, but instead made changes to align it with internal objectives. Shareholders are encouraged to read the judge’s decision for a better understanding of how the plan came about.
The vote on the compensation plan, along with the move to Texas and the re-election of board members, is set to take place in June. Tesla is hoping that shareholders will once again approve the controversial compensation plan and support the company’s continued growth under Elon Musk’s leadership.
