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The
filing did not break down the vote based on the type of
investor, but it underscored the support that Musk enjoys from
retail investors, many of whom are fans of the mercurial
billionaire.
Shares rose 1% before the bell Friday, after rallying nearly 3%
in the previous session following a Musk post ahead of the vote
that said the package was being approved by "wide margins".
Investors holding 1.76 billion shares voted in favor of the pay
package, which is the largest in U.S. corporate history, while
528.9 million shares voted against and 20.6 million shares
abstained, Friday's filing showed.
In 2018, 73% of Tesla investors had voted in favor of the same
pay package, which was voided by a Delaware judge this year.
The approval does not, however, resolve a lawsuit on the pay
package in a Delaware court, which some legal experts said could
stretch out for months. The judge invalidated the pay in
January, describing it as "unfathomable".
"Absolutely not (the end of legal matters). I think voting on
the package after it was overruled by the court is a fairly
unprecedented move. I don't think this automatically invalidates
what the judge did the first time around January," Mathieu
Shapiro, Managing Partner at law firm Obermayer said.
The proposal to reincorporate Tesla in Texas from Delaware
received about 84% of votes, excluding those of board members
Elon and Kimbal Musk, a step some analysts said might encourage
other companies also to shift.
Investors also passed proposals with about 53% voting, including
abstained votes, in favor of shortening board terms to one year
and lowering voting requirements for proposals to a simple
majority, despite board opposition to both.
(Reporting by Hyunjoo Jin in San Francisco and Aditya Soni and
Akash Sriram in Bengaluru; Editing by Arun Koyyur)
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