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Billionaire salary: Tesla shareholders should vote again on Musk’s compensation

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Billionaire salary: Tesla shareholders should vote again on Musk’s compensation

Elon Musk.

Steve Granitz/FilmMagic via Getty Images

Tesla will let its shareholders vote again on Elon Musk’s pay package.

A Delaware court had previously invalidated the package because it was considered excessive. The second shareholder vote is scheduled to take place at the company’s annual meeting in June.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

Tesla will let its shareholders vote again on Elon Musk’s huge pay package, which was previously overturned by a court. The carmaker announced its plans for another vote in one Declaration of Power of Attorney filed with the U.S. Securities and Exchange Commission (SEC) on Wednesday.

“Because the Delaware court rejected the decision, Elon Musk was not paid for his work for Tesla over the past six years, which helped create significant growth and value for shareholders,” it said Declaration of Power of Attorney. It continued: “This strikes us – and the many shareholders we have already heard from – as fundamentally unfair and inconsistent with the will of the shareholders who voted for it.”

Tesla said when 73 percent of shareholders voted for the pay package in 2018, it was a “big risk” aimed at “unprecedented growth.” But in January, a Delaware judge ruled in favor of a Tesla shareholder who argued in a lawsuit that Musk’s pay package was excessive.

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The compensation consisted of Musk receiving stock options based on financial targets. She played an important role in the Tesla boss’s rise to become the richest person in the world. He is now ranked third in the Bloomberg Billionaires Index, behind Amazon founder Jeff Bezos and luxury magnate Bernard Arnault.

When the compensation was declared invalid in court, it was worth $55 billion (€51.7 billion) – die „New York Times“ However, reports that it is now only valued at $47 billion (€44 billion).

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The second shareholder vote is scheduled to take place at the company’s annual meeting in June, according to the proxy filing.

Read the original article in English here.

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