Tesla asks shareholders to approve Texas move and restore Elon Musk’s $56B pay

Enlarge / Tesla CEO Elon Musk at an opening event for Tesla’s Gigafactory on March 22, 2022, in Gruenheide, southeast of Berlin. (credit: Getty Images | Patrick Pleul)

Tesla is asking shareholders to approve a move to Texas and to re-approve a $55.8 billion pay package for CEO Elon Musk that was recently voided by a Delaware judge.

Musk’s 2018 pay package was voided in a ruling by Delaware Court of Chancery Judge Kathaleen McCormick, who found that the deal was unfair to shareholders. After the ruling, Musk said he would seek a shareholder vote on transferring Tesla’s state of incorporation from Delaware to Texas.

The proposed move to Texas and Musk’s pay package will be up for votes at Tesla’s 2024 annual meeting on June 13, Tesla Board Chairperson Robyn Denholm wrote in a letter to shareholders that was included in a regulatory filing today.