Tesla will ask its shareholders to vote to approve the 2018 pay package that made CEO Elon Musk among the world’s richest people but that a Delaware judge threw out earlier this year.
The pay package gave Musk options to buy 303 million split-adjusted shares of Tesla at the cost of $23.34 a share each. At the time that a Delaware court threw out the pay package in January, it was worth $51 billion. But a drop in the value of Tesla shares since then has reduced its value to $40.7 billion.
In an initial vote in 2018, 73% of Tesla shares not held by Musk or his brother at that time voted in favor of the package. The company’s proxy statement filed with the Securities and Exchange Commission early Wednesday announcing plans for the vote said that “ratification will restore Tesla’s stockholder democracy.”
Delaware Chancery Court Chancellor Kathaleen McCormick ruled in January that Musk and the Tesla board “bore the burden of proving that the compensation plan was fair, and they failed to meet their burden.”
This is a developing story and will be updated.
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