Despite the approval, Musk may face a long legal battle to convince a Delaware judge who invalidated the package earlier this year. The Tesla CEO had threatened to build AI and robotics products outside of Tesla if he failed to gain enough voting control. The company's share price has dropped about 60% from its 2021 peak as EV sales have slowed and Musk's attention has been divided among other companies he runs.
Key takeaways:
- Tesla shareholders approved CEO Elon Musk's USD56 billion pay package and a proposal to move the company's legal home to Texas from Delaware.
- Shareholders increased the level of investor control by shortening board terms to one year and lowering voting requirements for proposals to a simple majority.
- Despite opposition from some large institutional investors and proxy firms, the proposal passed, indicating strong support for Musk from Tesla's retail investor base.
- Concerns were raised about Musk's focus being divided between Tesla and other companies he runs, including SpaceX, social media giant X - formerly Twitter - and the artificial-intelligence firm xAI.