The company also formally announced it will put up to shareholder vote Tesla’s proposed relocation of incorporation to Texas.
Topline
With Tesla facing slow growth and a stock market slide, shareholders will have a pair of major proposals on the slate at the electric vehicle company’s annual meeting: The reinstatement of billionaire CEO Elon Musk’s historic pay package months after a Delaware judge ruled it was excessive, and a plan to ditch Delaware altogether.Key Facts
Tesla shareholders will vote June 13 on restoring Musk’s performance-based stock options award struck down in January by a Delaware judge, and on moving Tesla’s state of incorporation from Delaware to Texas, Tesla’s chairman of the board Robyn Denholm announced in Tesla’s preliminary annual report filed with the Securities and Exchange Commission on Wednesday.
Musk’s pay package, which was first rolled out in 2018 when Tesla’s market capitalization stood at below $60 billion, fully vested in late 2022 after Tesla hit the laid-out performance milestones, theoretically allowing Musk to boost his stake from 13% to 22%.
Tesla’s market value was $499 billion at Tuesday’s close, implying the value of the pay package is about $41 billion after accounting for the cost of exercising the options.
