Photo: Wikimedia Commons / UK Government
Tesla announced that this year's stockholder meeting will take place on June 13. Musk asked investors to approve moving Tesla's state of incorporation from Delaware to Texas and re-pass his 2018 massive compensation plan. The latter was voided by a Delaware judge in January, which is why Musk wants to move Tesla to Texas in the first place.
Elon Musk made Tesla shareholders laugh in 2018 when he proposed a compensation plan worth $55 billion if the company exceeds $650 billion in market capitalization over the next decade. The reason was that Tesla was valued at $59 billion then, and increasing the shares' price tenfold was thought impossible. If Tesla had missed even one of what appeared to be impossible milestones, Musk would have received nothing.
Against all odds, Tesla reached all these targets much sooner than anyone expected. After only three years, Tesla was valued at $650 billion, and the package entered into effect. Musk received 1% of Tesla's value in stock options, or 1.68 million shares. However, a disgruntled Tesla shareholder with only nine shares filed a lawsuit, alleging that Musk controlled the board and misrepresented the case. The lawsuit ended in January when Judge Kathaleen McCormick of the Delaware Court of Chancery voided Musk's compensation package on the grounds that it was too high.
The decision made Musk fume, marking many of his subsequent decisions. Musk offered unsolicited advice on X to "never incorporate your company in the state of Delaware." At the same time, he vowed to change Tesla's state of incorporation to Texas, which is also home to its physical headquarters. As Tesla is preparing for the annual stockholder meeting, Musk is already seeking a vote to settle both matters.
A proxy statement released to stakeholders put moving Tesla to Texas and re-passing Musk's compensation plan as top proposals. Other proposals include the re-election of Kimbal Musk, Elon's brother, and James Murdoch, former 21st Century Fox CEO, to Tesla's board. The Board of Directors recommends voting "For" those proposals. At the same time, the board recommends voting "Against" all stockholder proposals, including one that would limit the director terms to one year.
After the Delaware court decision, Musk complained about possibly losing control of Tesla. This made him less willing to pursue new projects at the company. Lately, Musk diverted resources and talent from Tesla to X.Ai, his other company specializing in artificial intelligence. However, Musk is very keen on having his compensation package reinstated, which is why the company is promoting the vote like no other Tesla product.
Tesla launched a new website with the sole purpose of convincing shareholders to vote for reinstating Musk's $55 billion compensation plan. The SupportTeslaValue.com website claims that giving the shares to Musk will "protect your investment and Tesla’s future." However, it's unclear why shareholders would agree to give Musk more shares. Some of the biggest shareholders have revealed on social media that they would vote against reinstating Musk's package. The reason is that this would dilute their stake and voting rights.
Against all odds, Tesla reached all these targets much sooner than anyone expected. After only three years, Tesla was valued at $650 billion, and the package entered into effect. Musk received 1% of Tesla's value in stock options, or 1.68 million shares. However, a disgruntled Tesla shareholder with only nine shares filed a lawsuit, alleging that Musk controlled the board and misrepresented the case. The lawsuit ended in January when Judge Kathaleen McCormick of the Delaware Court of Chancery voided Musk's compensation package on the grounds that it was too high.
The decision made Musk fume, marking many of his subsequent decisions. Musk offered unsolicited advice on X to "never incorporate your company in the state of Delaware." At the same time, he vowed to change Tesla's state of incorporation to Texas, which is also home to its physical headquarters. As Tesla is preparing for the annual stockholder meeting, Musk is already seeking a vote to settle both matters.
A proxy statement released to stakeholders put moving Tesla to Texas and re-passing Musk's compensation plan as top proposals. Other proposals include the re-election of Kimbal Musk, Elon's brother, and James Murdoch, former 21st Century Fox CEO, to Tesla's board. The Board of Directors recommends voting "For" those proposals. At the same time, the board recommends voting "Against" all stockholder proposals, including one that would limit the director terms to one year.
After the Delaware court decision, Musk complained about possibly losing control of Tesla. This made him less willing to pursue new projects at the company. Lately, Musk diverted resources and talent from Tesla to X.Ai, his other company specializing in artificial intelligence. However, Musk is very keen on having his compensation package reinstated, which is why the company is promoting the vote like no other Tesla product.
Tesla launched a new website with the sole purpose of convincing shareholders to vote for reinstating Musk's $55 billion compensation plan. The SupportTeslaValue.com website claims that giving the shares to Musk will "protect your investment and Tesla’s future." However, it's unclear why shareholders would agree to give Musk more shares. Some of the biggest shareholders have revealed on social media that they would vote against reinstating Musk's package. The reason is that this would dilute their stake and voting rights.
NEWS: Tesla has launched a new website in connection with its 2024 annual shareholder meeting
— Sawyer Merritt (@SawyerMerritt) April 17, 2024
It in part goes over how much value @elonmusk has created at Tesla, and got into depth about the proxy proposals.
Link: https://t.co/DQJIBr9XPg pic.twitter.com/iT5Kp4ckko
Very sad that he has come to this point. Had a lot of respect for him but it’s all “poof” now
— First Principle Investor, Not CFA (@1stPrincipleInv) April 18, 2024
And he owns a lot of shares pic.twitter.com/OArbtlwocu
Google News