Court Upholds Ruling Against Musk's \$56 Billion Tesla Pay Package
A Delaware Chancery Court judge has rejected Tesla's appeal to overturn a previous ruling invalidating Elon Musk's \$56 billion compensation package. This decision comes despite shareholders voting to "re-ratify" the deal at Tesla's annual meeting. The judge's opinion highlighted flaws in Tesla's legal arguments, emphasizing that the attempt to change the court's decision contradicted established legal principles. Tesla has stated its intention to appeal to the Delaware Supreme Court. This situation raises questions about Musk's priorities, especially given his association with President-elect Donald Trump and Tesla's recent relocation to Texas.
Key Highlights
- The court's decision reinforces the initial ruling against Musk's compensation package.
- Tesla's attempt to re-litigate the deal through a shareholder vote was unsuccessful.
- The judge awarded the plaintiff's attorneys a substantial \$345 million fee.
- Tesla plans to appeal the decision to the Delaware Supreme Court.
The original lawsuit, filed by a former corporate lawyer, argued that the compensation package was unfairly negotiated due to Musk's significant influence over Tesla's board. The judge agreed with this argument in the initial ruling. For more on related topics, see Intel CEO Pat Gelsinger Resigns, Cyber Monday Apple Deals 2024, and KPay Secures $55M Series A to Revolutionize Merchant Financial Management.