"Elon Musk's $56bn pay package from Tesla should have been restored by a vote of the company's shareholders last year, a Tesla attorney has said to the Delaware Supreme Court in the United States. The Tesla lawyer made his arguments on Wednesday as one of the biggest corporate legal battles entered its final stage after a lower court judge had in January 2024 rescinded the Tesla CEO's record compensation."
"The Court of Chancery ruling striking down Musk's pay has become a rallying cry for Delaware critics. Chancellor Kathaleen McCormick ruled that the Tesla board lacked independence from Musk when it approved the pay package in 2018 and that shareholders lacked key information when they voted overwhelmingly in favour of it. As a result, she applied a demanding legal standard and found the pay unfair to investors."
Delaware's highest court heard arguments over whether Elon Musk's $56bn Tesla pay package should be reinstated after a lower court rescinded it in January 2024. Tesla argued that shareholders had restored the award and urged three legal avenues for reversal. The Court of Chancery found the Tesla board lacked independence and that shareholders lacked key information when approving the package, applying a demanding standard and ruling the pay unfair to investors. The ruling has prompted criticism of Delaware's corporate law and its Court of Chancery. Defendants denied wrongdoing and said the lower court misinterpreted facts and law. Musk did not attend the arguments.
Read at www.aljazeera.com
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