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Tesla urges Delaware Supreme Court to restore Musk's $56 billion payday
- On Wednesday, Elon Musk, Tesla's Chief Executive Officer, will urge the Delaware Supreme Court to restore his $56 billion 2018 stock-options pay package nearly two years after a lower court rescinded it.
- In 2018, Chancellor Kathaleen McCormick, Delaware Court of Chancery, ruled the Tesla board lacked independence and shareholders lacked key information when approving the pay package.
- Because the stock continued to appreciate, the options are currently worth closer to $120 billion, and the five justices on Delaware's high court will consider the appeal and the $345 million legal fee.
- If Musk loses the appeal, he would still receive tens of billions under a replacement deal Tesla agreed in August, and the outcome could impact Delaware's corporate law and Court of Chancery.
- Recently, companies including Tesla, Dropbox and Andreessen Horowitz moved legal homes to Texas or Nevada, prompting Delaware lawmakers to overhaul corporate law amid the 'Dexit' departures.
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UPDATE 3-Tesla urges Delaware Supreme Court to restore Musk's $56 billion payday
Elon Musk’s $56 billion pay package from Tesla should have been restored by a vote of the company’s shareholders last year, a Tesla attorney argued to the Delaware Supreme Court on Wednesday. The company is also appealing a ruling by the lower court that rejected as legally invalid a vote by shareholders to restore the pay package.
·India
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Investing.comTesla urges Delaware Supreme Court to restore Musk’s $56 billion payday
Electric car-maker Tesla on Wednesday urged the Delaware Supreme Court to restore the $56 billion pay package of its CEO, Elon Musk, which was struck down in January 2024. Tesla’s attorney argued that Musk’s pay package from the company should have been restored by a vote of shareholders last year. “This was the most informed […]
·India
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