Tesla stated, "A Delaware judge just overruled a supermajority of shareholders who own Tesla and who voted twice to pay Elon Musk what he's worth. The court's decision is wrong, and we're going to appeal. This ruling, if not overturned, means that judges and plaintiffs' lawyers run Delaware companies rather than their rightful owners - the shareholders."
Chancellor Kathaleen McCormick pointed out that allowing defeated parties to create new facts in order to revise judgments "would mean that lawsuits would become interminable," thus justifying the court's ruling against the shareholder vote.
McCormick's ruling raised concerns about the influence of Elon Musk over Tesla's board, stating the board's closeness to Musk called into question the validity of the compensation package's approval.
Tesla contends that the court's decision undermines shareholder democracy, arguing that investors should have the final say on executive compensation, as demonstrated by the repeated shareholder approval of Musk's package.
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