Tesla (TSLA) is starting to prepare for the company’s shareholder meeting on 13 June by filing its proxy statement with two potentially controversial areas in it.
Tesla Looking To Move To Texas And Reinstate Elon Musk’s $56bn Pay Package
The first point covered by board chair Robyn Denholm was that they want to move the corporate home of the electric vehicle maker to Texas, where the physical headquarters are based.
The other point raised by Denholm is that they want to reinstate the giant $56bn pay package awarded to CEO Elon Musk in 2018 and that a judge in Delaware voided earlier this year. In her letter to shareholders, Denholm said that the time is right to move from their current state of incorporation in Delaware to a legal home in Texas.
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This comes a couple of months after a court in Delaware ruled that the decision to award Musk a 2018 pay package of $56bn wasn’t done in the company’s best interests and that it had been agreed upon following very little negotiation. Shortly afterwards, Musk said on X that he recommended incorporating companies in Texas or Nevada rather than Delaware.
Denholm stated that reinstating the full package agreed for Musk in 2018 is the right move. She commented that they had asked for “unbelievable growth and accomplishments. Elon delivered.” She pointed out that TSLA shareholders have benefitted from Musk’s leadership.
It’s unclear what the possible impact of weak demand for Tesla vehicles will have on the firm’s quarterly income report, which will be published next week.
