Tesla is seeking shareholder approval once again for CEO Elon Musk’s $56 billion pay package, which was initially rejected by a Delaware judge earlier this year. The compensation is tied to Tesla’s market value reaching $650 billion over the next decade, with the company currently valued at $500.36 billion.
The re-vote comes ahead of Tesla’s upcoming quarterly earnings report. The previous ruling on Musk’s pay package was deemed excessive and unfair to shareholders by the Delaware Court of Chancery.
Tesla is utilizing a provision in Delaware law to seek re-approval for the pay package, which the board considers a “novel” approach. In addition to the pay package, Tesla is also asking shareholders to approve the company’s plan to move its state of incorporation from Delaware to Texas.
This potential move could further escalate tensions between Musk and regulators, as he has previously relocated other companies, such as SpaceX and Neuralink, to different states. Tesla’s shares have experienced a decline this year due to a slowdown in global electric vehicle sales.
