Delaware Judge Hearings

Tesla's Elon Musk Lawyers Request Ruling Vacate

Delaware Judge Hearings

Shareholder Challenges Compensation

Attorneys representing Tesla CEO Elon Musk and Tesla's corporate directors are requesting that a Delaware judge overturn her previous decision in a case challenging Musk's 2018 compensation package. The request comes in response to a lawsuit filed by a Tesla stockholder who claims that the vote to approve Musk's pay was invalid.

In her initial ruling, Chancellor Kathaleen McCormick found that the vote had not been properly structured and that the directors had not adequately considered the potential risks of Musk's compensation package. The attorneys for Musk and Tesla disagree with this assessment, arguing that the vote was fair and that the directors had acted in good faith.

The shareholder attorneys, on the other hand, maintain that the vote was a sham and that the directors had breached their fiduciary duties. They also argue that the ruling should not be overturned, as it is consistent with Delaware law.

The Delaware judge presiding over the case has scheduled a hearing for Friday to consider the request from Musk and Tesla's attorneys. The outcome of the hearing could have significant implications for Musk and Tesla, as it could determine whether or not Musk's compensation package is ultimately upheld.

Conclusion

The legal battle over Musk's compensation package has been ongoing for six years and has cost Tesla millions of dollars in legal fees. The outcome of the case could have a lasting impact on Musk's leadership of Tesla and the company's ability to attract and retain top talent.