Tesla Urges Court to Respect $56 Billion Pay Vote for Musk on Friday

Aug 2, 2024, 07:04 PM

Tesla's legal team is urging a Delaware court to respect the shareholder vote ratifying Elon Musk's 2018 CEO performance-based compensation award. Despite the approval from shareholders, including Vanguard Group, Chancellor Kathaleen McCormick remains skeptical and is likely to side with plaintiffs who argue that the pay plan was overly influenced by Musk himself. Tesla attorneys are asking the judge to vacate her previous decision that invalidated the $56 billion pay package, emphasizing that honoring the shareholder vote would affirm the strength of corporate democracy. The decision is being contested, with some believing it will not be overturned on appeal. The case will be heard on Friday, and it follows two votes by shareholders. Tesla's legal team disagrees with the original ruling.