Judge Asked to Vacate Ruling on Tesla Pay Package For Musk
SUMMARY
Elon Musk's $56 billion pay package is under scrutiny as attorneys for Musk and Tesla's directors ask a Delaware judge to vacate her ruling requiring the company to rescind the deal. In January, Chancellor Kathaleen St. Jude McCormick ruled that the 2018 package was engineered through sham negotiations with non-independent directors. Despite this, Tesla shareholders ratified the pay package again in June, indicating strong support for Musk. Defense attorneys argue that the shareholder vote should override the court's decision, emphasizing shareholder sovereignty. However, McCormick expressed skepticism, noting there's no precedent in Delaware law for ratifying breaches of fiduciary duty post-trial. The plaintiff’s attorney argues that the court’s ruling should stand, warning against using the shareholder vote to overturn legal decisions.
