Tesla shareholders voted to reaffirm a large pay package for Elon Musk estimated to be worth over $48 billion dollars on Thursday.
Musk’s package was put to a shareholder vote after Chancellor Kathaleen St. Jude McCormick ruled Jan. 30 that the board of directors for the electric car company failed to provide sufficient justification for the payout to Musk, who also owns X, the social media site formerly known as Twitter, and is CEO of SpaceX, according to USA Today. Shareholders also approved a plan to reincorporate the carmaker in Texas at the meeting where Musk’s compensation, now estimated to be worth $48 billion, was reaffirmed, The Wall Street Journal reported.
The compensation package had previously been worth as much as $56 billion when it was challenged by a shareholder under a provision of Delaware law, according to court documents.
Musk previously moved SpaceX to Texas after the Delaware judge’s ruling, posting an image of a letter from Texas Secretary of State Jane Nelson making the move official on Feb. 14. Musk took a shot at Delaware as he announced SpaceX’s reincorporation.
“SpaceX has moved its state of incorporation from Delaware to Texas!” Musk said. “If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible.”
Musk and the Tesla board of directors reached out to shareholders to urge that they vote to reaffirm Musk’s compensation package, Fox Business reported. The vote is expected to give the company leverage as it contests McCormick’s Jan. 30 ruling blocking the package, according to the WSJ.
