Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Tesla revealed on Friday that chief Elon Musk had secured an emphatic victory in shareholder votes on his $56bn pay package and a proposal to move the company\u2019s domicile from Delaware to Texas.Musk\u2019s package of stock options \u2014 the largest in US history \u2014 was reapproved by 77 per cent of votes cast at Tesla\u2019s annual meeting in Austin on Thursday, according to a regulatory filing. Excluding shares owned by Musk and his brother Kimbal, the figure was 72 per cent. The plan to reincorporate in Texas won the backing of 63 per cent of votes cast. The margins of victory surprised even those inside the company. Chair Robyn Denholm had compared the task to climbing \u201cMount Everest\u201d during a frantic months-long campaign.The results are a significant boost for Musk as he seeks to reassert control over Tesla. The votes became a referendum on his mercurial leadership, in particular his plans to recast Tesla as an artificial intelligence and robotics company.The reaffirmation of his pay will also strengthen the company\u2019s hand as it attempts to overturn a January decision by a Delaware court to void the 2018 package of stock options over concerns about its value and the independence of the board.Musk opted not to be magnanimous in victory. Early on Friday morning he posted on X a photo of a cake he said he planned to send to Delaware as a \u201cparting gift\u201d. It was decorated with the words \u201cVox Populi, Vox Dei\u201d in icing, meaning \u201cthe voice of the people is the voice of God\u201d.Sending this cake to Delaware as a parting gift \ud83d\ude18 pic.twitter.com\/uLKE7LDSCW\u2014 Elon Musk (@elonmusk) June 14, 2024<\/p>\n
While the vote does not supersede the court\u2019s decision, the ratification could prove instrumental in persuading the judge to reverse or amend her stance. Musk\u2019s grip on the company would be tightened, boosting the chief executive\u2019s stake to more than 20 per cent from his current 13 per cent. The day before, as the polls closed at 4pm in Austin, Musk emerged on stage to address a rapturous crowd chanting his name, jumping up and down in celebration in front of a blue and pink neon sign in the shape of Texas.\u201cHot damn, I love you guys,\u201d he said to the audience of carefully-selected retail investors. \u201cWe have the most awesome shareholder base of any public company\u2009.\u2009.\u2009.\u2009We are not just opening a new chapter for Tesla, we are starting a new book.\u201dThe jubilant CEO cracked jokes, noting during his speech \u201cwhat do you know, it\u2019s 4:20pm\u201d, harking back to a 2018 tweet about taking Tesla private at $420 a share. Many interpreted the price as a reference to 4\/20; April 20 is a day celebrated by marijuana smokers.Tesla moved quickly to leave the state. On Friday, Denholm said in a letter to shareholders that she had already filed the paperwork to reincorporate in Texas. The chair added the \u201cdecisive approval by our stockholders confirms our commitment to the [pay] deal\u201d and \u201cwe intend to put it back in front of the court in Delaware to ensure that your voices\u2009.\u2009.\u2009. are heard\u201d.The next stage of the saga is a hearing in Delaware early next month, when the judge, Kathaleen McCormick, will consider a $5.2bn fee request made by the lawyers that successfully nullified the pay package. After her ruling, Tesla can appeal the pay decision to the Delaware Supreme Court.\u00a0Greg Varallo, lead attorney for the plaintiff, said: \u201cWe believe that the ratification vote that Elon demanded and coerced is deeply flawed as a matter of law, legally ineffective and does not impact our case. We will respond to any arguments raised in due course.\u201dKey to Tesla\u2019s success in the vote was persuading Vanguard, its largest shareholder with a 7.3 per cent stake, to flip its stance on pay, having opposed it in 2018.While conceding that the share grant was a \u201csubstantial outlier\u201d to any other in corporate history, Vanguard said \u201cthe unique circumstance of evaluating the plan retroactively eliminated our concerns\u201d.The $9.3tn asset manager said it had changed its position after meeting Musk and Tesla directors. It concluded that \u201cthe strong alignment of executive pay with shareholder returns since 2018 and the benefits the board asserted related to the motivational value for the CEO in preserving the original deal\u201d were enough to justify its shift.BlackRock, the second-biggest, also supported both resolutions. BlackRock declined to comment.Additional reporting by Will Schmitt and Patrick Temple-West in New York<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Tesla revealed on Friday that chief Elon Musk had secured an emphatic victory in shareholder votes on his $56bn pay package and a proposal to move<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-123216","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/123216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=123216"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/123216\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=123216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=123216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=123216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}