(New York) The car manufacturer Tesla proposed a consultation after its shareholders approved last week, for the second time, the enormous compensation plan of its boss Elon Musk, which was canceled in January by a Delaware judge .
“Following a ratification vote having benefited from all the necessary information, which embodies a desire and insightful business judgment on the part of the shareholders, the ratification is now effective,” wrote the automaker in a letter addressed to Kathaleen McCormick, the Delaware judge, and obtained Monday by AFP.
This letter follows the approval at the general meeting Thursday afternoon of Elon Musk’s compensation plan, which was estimated at $56 billion when it was developed in 2018.
It was validated by the shareholders in March of that year, but one of them filed an appeal for annulment, which was granted at the end of January by Judge McCormick.
However, believing that this remuneration was justified, the board of directors resubmitted it to shareholders on June 13.
According to a document filed with the American Stock Exchange Police (SEC), the resolution obtained approximately 72% of the votes (excluding Elon Musk and his brother Kimbal), compared to 73% in 2018.
Shareholders also validated the transfer of Tesla’s domicile from Delaware to Texas. This resolution obtained 84% of the votes (excluding the two brothers).
For Tesla, this vote “significantly affects the appeals and allegations in this case”.
He thus suggested “a meeting between the parties to discuss a proposal for the continuation” of the case, specifying that the plaintiff’s office had given its agreement.
In a separate letter, the latter’s lawyers expressed their “disagreement” with Tesla’s assertions, repeating that the AG’s decision had “no legal consequence” on their appeal.
However, they decided, “in good faith”, to accept the hand extended by Tesla, while demanding that the consultation take place before a procedural hearing – scheduled well before the AGM – scheduled for July 8.
Around 3 p.m. (Eastern time), Tesla shares gained 4.89% on the New York Stock Exchange.