Chancellor Kathaleen McCormick alleged Musk and the Tesla board breached their fiduciary duty by approving a pay package for Musk that was 'unfathomable' in size, despite the support from a supermajority of shareholders.
Tesla shareholders ratified Elon Musk's 2018 compensation plan at the company's 2024 Annual Shareholders Meeting, indicating strong support among investors for the high-risk compensation structure approved by the company's board.
Tesla asserted that the judge's ruling undermines the will of the majority of shareholders, stating, 'A Delaware judge just overruled a supermajority of shareholders who voted twice to pay @elonmusk what he's worth.'
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