Tesla, Inc. is set to allow shareholders to ratify CEO Elon Musk's 2018 compensation package at the upcoming annual meeting on June 13, 2024. This follows a Delaware Chancery Court decision in January 2024 that nullified Musk's $55 billion compensation package, leaving him without any compensation for the past six years. The court had found that Tesla failed to meet procedural requirements for Musk's pay plan, which was initially approved by 73% of Tesla's independent shareholders. Despite record losses and production struggles after the plan's announcement, Musk managed to increase Tesla's market value ten-fold. Tesla has now formed a new special committee and is seeking shareholder ratification with full disclosure of the court-identified flaws. Legal experts argue that...Show More

Tesla, Inc. is set to allow shareholders to ratify CEO Elon Musk's 2018 compensation package at the upcoming annual meeting on June 13, 2024. This follows a Delaware Chancery Court decision in January 2024 that nullified Musk's $55 billion compensation package, leaving him without any compensation for the past six years. The court had found that Tesla failed to meet procedural requirements for Musk's pay plan, which was initially approved by 73% of Tesla's independent shareholders. Despite record losses and production struggles after the plan's announcement, Musk managed to increase Tesla's market value ten-fold. Tesla has now formed a new special committee and is seeking shareholder ratification with full disclosure of the court-identified flaws. Legal experts argue that under Delaware law, shareholders should have the right to ratify compensation for services already rendered, as long as it does not constitute waste. Tesla has also filed a definitive proxy statement with the SEC regarding the solicitation of proxies for the annual meeting, urging shareholders to read the materials provided for information on the matters to be voted on.