"Chancellor Kathaleen McCormick ruled that Tesla's board lacked independence from Musk when the pay package was approved in 2018, and that it should not be granted. She called it "an unfathomable sum." In response to the pay package's rejection by Chancellor McCormick, Tesla held a second shareholder vote last year, which once again showed investors were willing to support Musk's payday."
"In response to the pay package's rejection by Chancellor McCormick, Tesla held a second shareholder vote last year, which once again showed investors were willing to support Musk's payday. It was approved by shareholders, but it was once again denied by the court. Today, Tesla attorneys argued to the Delaware Supreme Court that the pay package should be restored because of last year's vote by shareholders."
Tesla is appealing to the Delaware Supreme Court to restore Elon Musk's $56 billion 2018 pay package after the Delaware Chancery Court rescinded it in January 2024. Chancellor Kathaleen McCormick found the board lacked independence when approving the package and called it "an unfathomable sum." Shareholders approved the package twice, including a reaffirming vote in 2024, but the court rejected both approvals. Tesla argued that the 2024 vote was the most informed stockholder vote and should resolve the case. In September, Tesla proposed a new potential $1 trillion compensation plan tying Musk's pay to ambitious market-cap milestones.
Read at TESLARATI
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