,
,
,
, ‘Tesla, the U.S. electric car company, had the decision to re-approve a reward of tens of trillions of Korean won for Elon Musk, the CEO, passed at the Tesla shareholders meeting on the 13th local time.’,
,
, ‘Tesla announced that at the annual shareholders meeting held at the headquarters in Austin, Texas, Musk’s CEO received approval for the 2018 CEO pay package, which includes giving Musk stock options worth tens of trillions of Korean won based on the company’s performance.’,
,
, ‘The approval percentage for the vote was not disclosed on-site.’,
,
, ‘This compensation plan involves Musk receiving a total of 330 million stock options in 12 installments based on Tesla’s revenue and market capitalization achievements.’,
,
, ‘The value of these stock options once reached $56 billion (approximately 77 trillion Korean won), but based on the closing price on that day ($182.47), it was around $48 billion (approximately 66.1 trillion Korean won).’,
,
, ‘After the 2018 compensation plan was approved through the board and shareholders’ meeting, Musk had received all stock options by meeting all contractually required performance goals, but small shareholder Richard Tornetta filed a lawsuit to declare it null and void. Musk was temporarily victorious in January of this year, he was put in a situation where he had to return all the stock options he had received thus far.’,
,
, ‘The Tesla Board of Directors vowed to appeal to the State Supreme Court when the decision on the nullity lawsuit is confirmed in July.’,
,
, ‘The approval of the compensation plan at this shareholders meeting does not have immediate effect on the lawsuit.’,
,
, ‘However, the confirmation of the shareholders’ support could have implications in the upcoming appellate court trial, according to experts.’,
,
, ‘In January, the Delaware court judge who ruled against the nullity of Tesla’s compensation plan determined that there were “serious flaws” in the process of approving this compensation plan.”,
,
, ‘In particular, Musk was criticized for exerting significant influence on Tesla’s board and for not adequately disclosing the contents of the compensation plan to the shareholders.’,
,
, ‘However, with Tesla’s board presenting detailed information of the compensation plan and persuading the shareholders at this shareholders meeting, it is expected that the court will take that into account.’,
,
, ‘Alexander Porter, an analyst at investment bank Piper Sandler, stated, “The Delaware judge rejected this compensation plan on the grounds that it was limited in disclosure to shareholders” and said, “Considering the enhanced disclosure content before this vote, it remains to be seen whether any problems will be raised with the newly approved compensation plan,” to Reuters.’,
,
, ‘Eric Talley, a professor at Columbia Law School, explained that the correction of the flaws in the approval process of the compensation plan pointed out by the court during Tesla’s recent shareholders meeting vote could have an impact.’,
,
, ‘Christopher Chase, the CEO of investment firm Chai Capital, evaluated, “People trust Elon, which is why they invest in Tesla.” and said, “The shareholders’ decision to reward this person and move forward is the conclusion reached by the shareholders.”‘,
,
, ‘However, there are also expectations that the approval at this shareholders meeting may not have much impact on future court rulings.’,
,
, ‘Adam Badawi, a law professor at UC Berkeley, said, “It is not certain whether the Delaware court will recognize the effectiveness of the shareholders’ vote.”‘,
,
, ‘At this shareholders meeting, a proposal to relocate Tesla’s corporate domicile from Delaware to Texas, proposed by Musk after the January Delaware court ruling on the nullity of the compensation plan, was also approved.’,
,
, ‘This lawsuit was heard in the Delaware court, where Tesla’s corporate domicile is located and where jurisdiction is based, but after Musk received news of the nullity of the compensation plan, he tweeted, “Do not ever establish a company in Delaware ” expressing dissatisfaction.’,
,
, ‘In addition, at this shareholders meeting, it was approved to reappoint Kimbal Musk, Elon’s younger brother, and James Murdoch, son of media giant Rupert Murdoch, as directors among the current Tesla Board members.’,
,
, ‘Tesla’s stock price rose by 2.92% on that day in regular trading and showed a slight increase of less than 1% in after-hours trading following the announcement of the shareholders meeting results.’,
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, ‘(Photo=Getty Images Korea)\n’