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Tesla shareholders have approved Elon Musk’s multi-billion-dollar pay package.

The package is now worth $44bn (£34bn). The package was once as much as $56bn (£44bn) but has declined in value in tandem with Tesla’s stock.

The proposal passed despite opposition from some large institutional investors and proxy firms.

Onstage at the annual shareholder meeting in Austin, Texas, the billionaire described himself as “pathologically optimistic”.

“If I wasn’t optimistic this wouldn’t exist, this factory wouldn’t exist,” Musk said to resounding applause.

“But I do deliver in the end. That’s the important thing.”

The approval does not, however, resolve a lawsuit on the pay package in a Delaware court, which some legal experts believe could last months.

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The judge invalidated it in January, describing it as “unfathomable”.

Musk may also face fresh lawsuits on the deal, which would be the largest in American corporate history.

Shareholders had first approved the bumper pay packet in 2018.

“This thing is not over,” said Brian Quinn, a professor at Boston College Law School.

The Delaware judge will scrutinise the vote and require Tesla to prove the process was not coerced or improperly influenced by Musk, Professor Quinn said.

A general view of the Tesla gigafactory in Austin, Texas, U.S., February 28, 2023. REUTERS/Go Nakamura
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A general view of the Tesla gigafactory in Austin, Texas, U.S., February 28, 2023 Pic: Reuters

The judge had criticised Tesla’s board fore being “beholden” to Musk, saying the plan was proposed by a “conflicted board” with “close personal and financial ties” to its top executive.

Shareholders also approved a proposal to move the company’s legal home to Texas from Delaware.

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They also backed other proposals, including the re-election of two board members, Musk’s brother Kimbal Musk and James Murdoch, son of media mogul Rupert Murdoch.

Shareholders did increase the level of investor control by passing proposals in favour of shortening board terms to one year and lowering voting requirements for proposals to a simple majority, despite board opposition to both.

Tesla did not disclose the voting tallies, which are expected to be revealed in coming days.

At least a half-million viewers watched the meeting on the livestream on X, which Musk also owns, and about 40,000 watched on YouTube.

Tesla’s share price has dropped about 55% from its 2021 peak as electric vehicle sales have slowed.

The stock closed up 2.9% on Thursday.

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Southern Water considering shipping supplies from Norway to UK due to drought fears

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Southern Water considering shipping supplies from Norway to UK due to drought fears

One of the UK’s largest water companies is considering shipping supplies from Norway to the UK.

Southern Water said the idea was a “last-resort contingency measure” in case of extreme droughts in the early 2030s.

Up to 45 million litres could be brought to the UK per day under the proposals.

The Financial Times, which first reported the potential move, said the water, from melting glaciers by fjords in the Scandinavian country, would be transported by tankers.

It comes as fears grow over the future of water services in the UK following droughts in the summer of 2022 when some areas of the country came close to running out of supplies.

The Financial Times said Southern Water was in “early-stage” talks with Extreme Drought Resilience Service, a private UK company that supplies water by sea tanker.

The firm would pay for the measure out of customers’ bills, according to the report.

Southern Water, which covers Hampshire, Kent, East and West Sussex, and the Isle of Wight, currently gets its supplies from groundwater and rare chalk streams.

However, the Environment Agency (EA) has urged the firm to reduce its reliance on such sources amid concerns over the environmental impact and fears they could make the risk of droughts worse.

‘Costly and carbon-intensive’

Water firms have come under growing criticism in recent years over sewage spills and rising bills, with households facing an average increase of 21% over the next five years.

Companies have also been urged to improve their infrastructure to help supplies. Currently around a fifth of water running through pipes is lost to leaks, according to regulator Ofwat.

And a report by the EA earlier this year found that Southern Water, along with Anglian Water, Thames Water and Yorkshire Water, was responsible for more than 90% of serious pollution incidents.

Following criticism over sewage discharges, Southern Water’s chief executive Lawrence Gosden blamed “too much rain” in 2023 for the problem during an interview with ITV News.

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The company said it was facing a shortfall of 166 million litres per day in Hampshire alone during future droughts.

But the firm said it was already undertaking other measures to address the problem, including by building the UK’s first new reservoir in more than three decades in Havant Thicket.

However, Greenpeace UK’s chief scientist Dr Doug Parr criticised the Norway proposal and said the firm should focus more on addressing issues domestically.

“Tankering in huge quantities of water from Norway will inevitably be a costly and carbon-intensive alternative to that of doing a better job with the water resources that are available in a rainy country like the UK,” he said.

He added: “Despite the obvious failings of planning, water companies need to start thinking of potable fresh water as a precious and finite resource, and plan to start treating it as such.”

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From 2022: How can we protect ourselves from water crisis?

Tim McMahon, Southern Water’s managing director for water, said: “We put less water into supply now than we did 30 years ago and measures like reducing leakage have enabled us to keep pace so far with population growth and climate change.

“As we work to take less water from our chalk streams and build new reservoirs like Havant Thicket in Hampshire, we need a range of options to help protect the environment while this infrastructure comes online.”

Mr McMahon added: “Importing water would be a last resort contingency measure that would only be used for a short period in the event of an extreme drought emergency in the early 2030s – something considerably worse than the drought of 1976.

“We’re committed to continuing to work with our regulators on developing the right solutions to meet the challenge of water scarcity, while protecting the environment.”

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Six Nations backer CVC plots trip with Loveholidays

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Six Nations backer CVC plots trip with Loveholidays

The private equity giant which owns a stake in rugby’s Six Nations Championship is weighing a bid for a stake in one of Britain’s biggest online travel agents.

Sky News has learnt CVC Capital Partners is among the suitors considering making an offer to become a partial owner of Loveholidays.

The travel company, which has been backed by Livingbridge, a smaller private equity firm, since 2018 has been exploring its ownership options for months.

Some industry sources believe Loveholidays is leaning towards a minority stake sale following talks with prospective investors.

CVC’s interest is at an early stage and might not lead to a firm offer, they said.

Loveholidays, along with OnTheBeach and TUI, ranks among the UK’s biggest travel agents and has been a big winner from the post-pandemic resurgence in demand from holidaymakers.

Last year, Sky News reported bankers at Evercore were being lined up to run a process and Loveholidays was likely to be worth in the region of £1bn.

It specialises in trips to the Mediterranean and Canary Islands, and boasts that its inventory of 35,000 hotels and 99% of all flights result in 500 billion possible holiday packages.

Loveholidays was founded in 2012 by Alex Francis and Jonny Marsh, and now employs hundreds of people.

CVC declined to comment.

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Boeing to meet union in bid to end crippling two-week strike

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Boeing to meet union in bid to end crippling two-week strike

Boeing and union negotiators will meet later in a fresh bid to end strikes by workers that have hammered plane production, exacerbating the fallout from the company’s safety crisis.

The company, which is bidding to revive its fortunes under a new chief executive, has more than 32,000 staff refusing to work.

They walked out of factories in the Seattle area and in Oregon, which make aircraft including its 737 MAX models, on 13 September in protest at new contracts.

The International Association of Machinists and Aerospace Workers (IAM) is demanding the workers get a 40% pay rise.

It is also seeking the restoration of a defined benefit pension plan.

Boeing made this week, what it said was, a “best and final offer” of a 30% pay rise over four years and a performance-related bonus.

The union has refused to put the offer to a vote, declaring it falls short of what its members find acceptable.

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Two previous days of negotiations ended without agreement.

Boeing 737 Max aircrafts are seen behind fences as Boeing employees work the picket line while striking Tuesday, Sept. 24, 2024, next to the company's facilities in Renton, Wash. (AP Photo/Lindsey Wasson)
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Boeing 737 Max aircraft are parked behind a picket line in Washington. Pic: AP

Boeing placed tens of thousands of other workers on furlough as the strike began.

Production of its best-selling planes, the 737 MAX models, had already been hurt by curbs imposed by regulators in the wake of the mid-air Alaska Airlines scare in January that saw a panel blow out, forcing the 737 MAX 9 plane into an emergency landing.

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Investigators examine the panel which failed during a flight on a Boeing MAX 9 jet in January

The incident prompted renewed safety scrutiny of Boeing after the scandal that followed the fatal crashes of MAX 8 planes in 2018 and 2019, blamed on faulty flight control software.

The production limits imposed on Boeing this year have further harmed deliveries to customers globally, including Ryanair.

Europe’s largest carrier by passengers, which has blamed Boeing’s delays for cuts to its expansion plans this year, made clear it feared extended delays to deliveries of new planes this week when asked about the impact of the strikes.

“The union is ready for this opportunity to bring forward the issues that members have identified as critical to reaching an agreement,” IAM said in a statement.

“We know that the only way to resolve this strike is through negotiations.”

Boeing, which has seen its shares fall 40% in the year to date, did not comment ahead of the talks.

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Susannah Streeter, head of money and markets at Hargreaves Lansdown, said of the dispute this week: “Boeing remains deep in a wage row, which is spelling fresh production trouble ahead.

“Shareholders who hoped that the arrival of a new CEO Kelly Ortberg in August would help the company make a fast exit from its difficulties are sorely disappointed. The deep-seated nature of the challenges the company is facing has come even starker, given the rejection of 30% pay offer to staff.

“Relations between management, union leadership and staff appear to have broken down further, given complaints by workers that they weren’t given time to vote on the latest proposal.”

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