Tesla Turns Up Charm Ahead Of Investor Vote On Huge Musk Pay Plan

New York, (APP - UrduPoint / Pakistan Point News - 11th Jun, 2024) Electric automaker Tesla has launched a charm offensive to try to coax shareholders to vote Thursday for billionaire CEO Elon Musk's giant pay package, after the windfall was nixed in court.

The company has mounted a social media campaign and even invited shareholders to enter a sweepstakes to win a tour of Tesla's Gigafactory in Texas, personally escorted by designer Franz von Holzhausen and Musk, on the eve of the annual meeting.

The contest winners -- 15 shareholders picked at random -- will also have reserved seats at the June 13 meeting, at which investors will also vote on a plan to shift Tesla's place of incorporation from Delaware to Texas.

The automaker has depicted the vote as a do-or-die moment for the company.

"The future value we are poised to deliver for you is at risk," the company says on a website for the annual meeting.

"We need your vote NOW to protect Tesla and your investment."

In March 2018, shareholders backed the package, under which Musk stands to potentially make $56 billion. It was designed to reward the 52-year-old founder for Tesla's significant growth.

But in January this year, a Delaware judge nullified the package, ruling that it was devised in a "deeply flawed" manner given Musk's extensive ties to key Tesla directors who blessed the plan.

Musk's pay package was "the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude," Judge Kathaleen McCormick wrote in a ruling in favor of a shareholder who challenged the plan.

In response, company leaders, including Tesla's board chair Robyn Denholm, have thrown their weight behind Musk, viewing him as indispensable to the company's future.