Tesla shareholders have backed a record-breaking pay package for CEO Elon Musk and approved a plan to move the firm’s legal headquarters to Texas.
Earlier this year, a judge in Delaware blocked the package over concerns that it was unfair to shareholders. The vote represents a victory for Musk, who had campaigned vigorously for the payout, which could be worth up to $56 billion (£43.9 billion), depending on Tesla’s share price.
“Hot damn, I love you guys,” he told a crowd of enthusiastic shareholders who had gathered in Texas for the firm’s annual meeting.
However, the vote is not binding and legal experts have said it is not clear if the court that blocked the deal will accept the re-vote and allow the company to restore the pay package.
“The vote changes nothing,” said Mathieu Shapiro, a managing partner at law firm Obermayer Rebmann Maxwell & Hippel.
“It only offers Tesla opportunities to try to use the vote to obtain a better decision going forward,” he added.
The eye-popping sum had sparked criticism and raised concerns that the company’s board was too submissive and close to Elon Musk.
Musk announced the move of Tesla’s legal headquarters to Texas after a judge in Delaware, where the company is currently incorporated, voided his pay package, siding with a small investor who had sued over the deal.
The fight over the plan highlighted concerns about Musk’s leadership, especially as Tesla’s share price has fallen from its peak and its position in the electric car industry is under pressure.
However, Musk successfully rallied his fan base in support of the deal, appealing particularly to individual investors who make up a significant portion of Tesla’s shareholder base.
“It’s a pretty ringing endorsement,” said car industry analyst Karl Brauer, noting that Musk received more than enough shareholder support “to justify the package.” The company did not immediately disclose the margin of the vote.
