The pay package, approved in 2018, gives Musk Tesla shares, which he can later convert into cash.
Tesla shareholders voted to approve a $56 billion pay package for CEO Elon Musk and to move the electric car maker’s headquarters to Texas. This was reported by Reuters on Friday, June 14.
It is noted that this decision gives Tesla more opportunities in the Delaware court, which previously canceled the payment package. The vote is also a big win for Musk and the board.
The pay package, approved in 2018, gives Musk Tesla shares that he can later convert into cash if the company reaches certain growth and market value targets.
The decision comes amid controversy over whether Musk actually got the payout. Some investors argue that the package is too generous and the businessman has already benefited greatly from the growth of Tesla shares.
But Musk’s fans argue that he played a key role in making Tesla one of the world’s most successful automakers and deserves to be rewarded for his achievements.
We remind you that the compensation agreement between Musk and Tesla is the largest in the history of the world company. Finished in 2018, this is why last year the CEO of the company was made the richest person on the planet. According to the agreement, Musk should receive the money if the company’s market capitalization grows by $50 billion. Tesla hits its 2023 revenue target.
It was previously reported that Musk was accused of making the claims. The SpaceX founder allegedly showed sexual interest in several women who once worked for him. Musk even offered to give her children.
Source: korrespondent
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