"Elon Musk's lawyers will urge the Delaware Supreme Court on Wednesday to restore his $56 billion pay package from Tesla, as one of the biggest corporate legal battles enters its final stage nearly two years after a lower court judge rescinded the Tesla CEO's record compensation."
"The January 2024 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 favor of it. As a result, she applied a demanding legal standard and found the pay unfair to investors."
Elon Musk's lawyers will urge the Delaware Supreme Court to restore his $56 billion pay package from Tesla. The appeal follows a lower court ruling that rescinded the compensation nearly two years earlier. The outcome could substantially affect Delaware, its corporate law, and the Court of Chancery. Chancellor Kathaleen McCormick found the Tesla board lacked independence and that shareholders lacked key information, applying a demanding legal standard and deeming the pay unfair. Current and former directors deny wrongdoing. Several companies shifted incorporation to Texas or Nevada, and Delaware lawmakers overhauled corporate law. Tesla agreed to a replacement award if the original plan is not restored.
Read at Fast Company
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