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What will be Tesla's stock price range by end of 2025 amid governance issues?
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Elon Musk Appeals $56B Pay Rejection Amid $919M Tesla Settlement
Jan 8, 2025, 06:20 PM
Tesla CEO Elon Musk has officially filed an appeal with Delaware’s Supreme Court after a state judge rejected his $56 billion compensation package for the second time. The pay package, initially approved by shareholders in 2018, allowed Musk to purchase up to 304 million Tesla shares at a pre-set price of $23.34 upon meeting specific performance goals. The rejection of the package by Chancellor Kathaleen McCormick cited flaws in Tesla's governance and the process of shareholder approval. Tesla argues that the ruling undermines shareholder rights. Separately, a Delaware judge approved a settlement worth up to $919 million requiring Tesla board members, including Chair Robyn Denholm and James Murdoch, to return $734 million in stock, options, and cash to resolve allegations of excessive compensation. The settlement also awarded $176.16 million in attorney fees to the legal firms involved.
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