Tesla chair Robyn Denholm criticised the Delaware Chancery Court’s January decision, writing in the proxy that it had effectively second-guessed shareholders who approved Musk’s performance-based award in 2018.
Tesla Inc. will ask shareholders to vote again on the same $56-billion compensation package for chief executive officer Elon Musk that was voided by a Delaware court early this year.issued Wednesday, Tesla also said it will call a vote on moving the company’s state of incorporation to Texas from Delaware. The carmaker will convene its annual meeting on June 13.
Earlier this week, the company announced plans to cut global headcount by more than 10%, and two senior executives left.Tesla’s board formed a special committee this year consisting of director Kathleen Wilson-Thompson and a group of advisers to determine two things: whether it should remain incorporated in Delaware, and whether to call another shareholder referendum on Musk’s pay concurrently with a vote on a possible reincorporation in a different state.
Ratifying the 2018 package will be faster and “avoid a prolonged period of uncertainty regarding Tesla’s most important employee.” The carmaker also said that thousands of retail investors have sent letters and emails to the board expressing the same sentiment. “It is not reasonable for investors to expect to re-absorb the cancelled options and consider all that value creation to have been delivered to us for no consideration.”The effort to move Tesla’s incorporation adds to the fallout from the decision to void Musk’s compensation, which already has prompted the billionaire to relocate several of his closely held companies. He said in February that SpaceX had filed to move to Texas from Delaware.
Kimbal Musk, a director since 2004, is the longest-serving member of the carmaker’s eight-person board. Murdoch joined in 2017.
Elon Musk Kimbal Musk Robyn Denholm Tech Shares Tesla Tesla Board Business
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