Tesla offers to repay Musk billions of dollars

American automaker Tesla will ask its shareholders to re-approve CEO Elon Musk’s $56 billion payout. It is proposed to vote for this decision at the next meeting of shareholders, which will be held on June 13, writes CNBC.

At the beginning of the year, a Delaware court annulled the decision to pay Musk a record bonus, approved by shareholders back in 2018, finding the amount unfairly assigned. Shareholders will also be asked to vote on whether to transfer the company’s registration from Delaware to Texas. The head of the company made this decision after the payments were canceled by the court.

Tesla Chairman of the Board of Directors Robin Danholm recalled that in 2018, 73 percent of shareholders voted for the decision to pay Musk. He also emphasized that due to the court decision, the businessman has not received payment for his work over the past six years. At the same time, Musk was able to ensure significant growth for the company, as well as an increase in its value, Danholm added.

In 2018, Musk waived his salary at Tesla, tying his remuneration to the company’s achievement of key metrics. By agreement with the board of directors, over a 10-year period, he can expect to receive options on shares equivalent to one percent of all outstanding securities.