Most of Tesla’s shareholders approved Elon Musk’s $56 billion compensation package and the company’s decision to move its legal headquarters to Texas. Notably, Elon Musk expressed his appreciation for the Tesla shareholders by applauding the creation of the X platform.
Meanwhile, amid ongoing legal challenges and criticism of Musk’s role at Tesla, the ruling represents a major victory for Musk. In addition, the cryptocurrency community has applauded the majority’s support for the Tesla compensation deal.
Elon Musk Applauds Support for Tesla Shareholders’ Pay Package
With most of its shareholders voting to approve the $56 billion compensation plan, the market is paying attention to Tesla, the premier electric vehicle manufacturer. Furthermore, the shareholders approved Tesla’s legal home relocation to Texas, which is a big step forward.
Furthermore, Musk praised the voting on social media, indicating that despite current legal problems, there is widespread faith in his leadership. Notably, Elon Musk has expressed his appreciation to the investors for their backing.
The compensation package plan’s contentious stance has drawn market attention since it was first presented in 2018. Significantly, it is the biggest compensation package in American business history, and the Tesla board feels Elon Musk should receive it in exchange for exceeding predetermined benchmarks for market value, revenue, and profitability.
However, a Delaware judge had already declared the proposal void, accusing the Tesla board of giving Musk an “unfathomable” sum and neglecting to secure the required approval from shareholders. The board is certain that Musk will play a crucial role in Tesla’s success, as evidenced by its decision to put the package to a vote among shareholders in an attempt to bolster its appeal against the order.
The Crypto Community Responds
Reactions outside the Tesla shareholder base have been sparked by Elon Musk’s compensation package and the company’s intention to move its legal headquarters. Netizens, particularly those in the cryptocurrency community, responded to Elon Musk’s disclosure of the most recent X platform development.
For background, Elon Musk’s development has been hailed by Billy Markus, aka Shibetoshi Nakamoto, the co-founder of Dogecoin. In addition, he attacked the “Delaware Judge” in his social media comment.
On the other side, Charles Hoskinson, co-founder of Cardano, criticized Delaware’s legal system for trying to siphon off shareholder monies for attorneys while applauding the majority’s approval for the Tesla compensation package. Hoskinson also opposed incorporation in Delaware, pointing to Elon Musk’s situation as proof of an unfair system.
A few sizable shareholders, notably the largest pension funds in California and Norway’s national wealth fund, were against the pay package because of its substantial size. Nevertheless, Tesla has actively sought support despite this, especially from its retail investors, who frequently abstain from voting.
Following the news, the price of Tesla’s stock increased 6.5% during the pre-market on June 13 to $188.88, from the previous day’s closing price of $177.29.
