Tesla launched a fresh bid to secure legal reinstatement of Elon Musk’s controversial $56 billion pay package on Monday – days after the corporate’s shareholders voted to ratify the record-setting agreement.
In January, Delaware Chancery Court Judge Kathaleen McCormick voided Musk’s stock-based compensation plan, which she known as an “unfathomable sum.” The package was challenged in a lawsuit filed by Tesla shareholder Richard Tornetta.
Tesla’s lawyers argued that the 2 sides should make their legal argument regarding the potential implications of last Thursday’s vote at the corporate’s annual meeting, where shareholders backed the deal.
“The approval of ratification by Tesla’s stockholders significantly impacts the claims and issues on this motion, including the court’s final judgment,” Tesla attorneys said in a letter to McCormick last Friday.
An attorney for the plaintiff shareholder fired back, arguing that the vote had “no legal effect” on the judge’s earlier decision to void the $56 billion package. The attorney is ready to file a legal temporary explaining his reasoning by Friday.
Tesla has acknowledged that shareholders’ ratification of the voided deal had created a “novel” end result – and that it was unclear if the vote would prompt McCormick to reverse course.
When issuing her decision last January, McCormick questioned whether the package was truly needed for Tesla to retain Musk’s services as CEO.
The judge also blasted the method by which Tesla’s board initially approved the package and located that the corporate had withheld key information from shareholders.
Tesla shareholders also approved a resolution on the annual meeting to alter the corporate’s state of incorporation to Texas from Delaware. Nearly 90% voted in favor of the move.
Musk had backed the change within the immediate aftermath of the judge’s decision to nix his compensation.
Last Friday, Musk shared a picture of a vanilla-frosted sheet cake with the words “Vox Populi, Vox Dei” – Latin for “the voice of the people is the voice of God” – written in red letters, together with an enormous heart.
Chancellor Kathaleen McCormick is pictured. Eric Crossan via Wikipedia
“Sending this cake to Delaware as a parting gift,” Musk wrote on X.
With Post wires
Tesla launched a fresh bid to secure legal reinstatement of Elon Musk’s controversial $56 billion pay package on Monday – days after the corporate’s shareholders voted to ratify the record-setting agreement.
In January, Delaware Chancery Court Judge Kathaleen McCormick voided Musk’s stock-based compensation plan, which she known as an “unfathomable sum.” The package was challenged in a lawsuit filed by Tesla shareholder Richard Tornetta.
Tesla’s lawyers argued that the 2 sides should make their legal argument regarding the potential implications of last Thursday’s vote at the corporate’s annual meeting, where shareholders backed the deal.
“The approval of ratification by Tesla’s stockholders significantly impacts the claims and issues on this motion, including the court’s final judgment,” Tesla attorneys said in a letter to McCormick last Friday.
An attorney for the plaintiff shareholder fired back, arguing that the vote had “no legal effect” on the judge’s earlier decision to void the $56 billion package. The attorney is ready to file a legal temporary explaining his reasoning by Friday.
Tesla has acknowledged that shareholders’ ratification of the voided deal had created a “novel” end result – and that it was unclear if the vote would prompt McCormick to reverse course.
When issuing her decision last January, McCormick questioned whether the package was truly needed for Tesla to retain Musk’s services as CEO.
The judge also blasted the method by which Tesla’s board initially approved the package and located that the corporate had withheld key information from shareholders.
Tesla shareholders also approved a resolution on the annual meeting to alter the corporate’s state of incorporation to Texas from Delaware. Nearly 90% voted in favor of the move.
Musk had backed the change within the immediate aftermath of the judge’s decision to nix his compensation.
Last Friday, Musk shared a picture of a vanilla-frosted sheet cake with the words “Vox Populi, Vox Dei” – Latin for “the voice of the people is the voice of God” – written in red letters, together with an enormous heart.
Chancellor Kathaleen McCormick is pictured. Eric Crossan via Wikipedia
“Sending this cake to Delaware as a parting gift,” Musk wrote on X.
With Post wires
