A majority of Tesla (TSLA) shareholders have voted to reinstate chief executive officer (CEO) Elon Musk’s $56 billion U.S. pay package after a judge ordered the company to rescind his compensation.
A judge in Delaware court had ruled that Tesla’s board of directors had improperly granted the pay package, which is the largest in U.S. corporate history.
The shareholder vote in support of Musk’s compensation doesn’t overturn the judge’s ruling but is seen as a vote of confidence in the Tesla CEO and could aid his negotiations for future performance-based pay.
A filing with the U.S. Securities and Exchange Commission (SEC) shows that 77% of Tesla shareholders voted in favour of granting Musk $56 billion U.S. in company stock.
In court, Judge Kathaleen McCormick called the compensation “unfathomable” and found that Tesla’s board members do not act independently from Musk.
Elon Musk is already the world’s richest person with an estimated net worth of $210 billion U.S.
Tesla shares rose 3% as reports circulated that stockholders had voted in support of Musk’s pay. However, Tesla’s stock is down 27% year-to-date and trading at $182.47 U.S. per share.
