Elon Musk's $56 billion pay package gets board nod months after court struck it down

Tesla shareholders have voted in favour of granting the company's founder and chief executive officer (CEO) Elon Musk an annual pay package of $56 billion.

The nod from shareholders came months after a court in Delaware struck down Musk's package, stating that the pay was "unfathomable".

Judge Kathaleen McCormick, who had issued the order in January, said the board's independence from Musk was not clear, and that it appeared to have failed to negotiate his remuneration package.

On Thursday, June 13, the voting on Musk's annual remuneration was held in Austin, Texas. While the details on the vote cast were not shared, but Musk took to social media platform X to confirm that shareholders have given their approval.

The shareholders also gave their nod to another proposal that seeks to shift Tesla from its current site of incorporate in Delaware -- where most listed companies are not incorporated -- to Texas, where its largest manufacturing unit is based.

Tesla shares surge

Following the announcements, Tesla shares jumped on the exchanges. The scrip settled 2.92% higher at $182.47 apiece on the NASDAQ.

Year-to-date, Tesla's stock is still down 26.55% as the shares have been battered due to dwindling earnings in the United States and increased competition in China -- one of its key markets -- due to emerging local electric vehicle players.