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flag Tesla shareholders approved Musk’s $1 trillion pay package after moving to Texas to limit lawsuits.

flag Tesla shareholders approved Elon Musk’s $1 trillion pay package by a 75% vote, following a Delaware court’s 2024 invalidation of his prior $56 billion deal over governance concerns. flag To shield the new package from future lawsuits, Tesla moved its legal domicile to Texas, which now enforces stricter rules for shareholder litigation, requiring a 3% ownership stake and proof of fraud or bad faith. flag These changes, now in Tesla’s bylaws, limit legal standing to a few large institutional investors, making coordinated lawsuits unlikely. flag The shift reflects a broader trend of companies relocating to states with more favorable corporate laws.

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