Tesla Asks Investors to Approve Musk’s $56 Billion Pay Again

Bloomberg04-17

Company also calls vote on moving incorporation to TexasTesla chair criticizes Delaware court that voided CEO’s awardElon MuskTesla Inc. will have shareholders vote again on its compensation package ...

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The electric-car maker will convene its annual meeting on June 13.Tesla Chair Robyn Denholm criticized the Delaware Chancery Court’s January decision, writing in the proxy that it amounted to second-guessing shareholders who had approved Musk’s compensation. Chief Judge Kathaleen St. J. McCormick described the company’s directors as “supine servants of an overweening master” and said they hadn’t looked out for the best interests of investors.“Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value,” Denholm wrote.The shareholder who sued Tesla over the CEO’s compensation criticized it as excessive and opaque. Musk, who runs six companies, said early this year he preferred to work on artificial intelligence and robotics products elsewhere unless he owns a 25% stake in Tesla. 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