A Delaware judge has cleared the way for Elon Musk and Tesla to appeal a ruling that blocked his record-breaking $56 billion pay package. Chancellor Kathaleen McCormick’s order allows Musk and the board that approved the 2018 compensation plan to challenge her January decision, which found they breached their fiduciary duty to investors by approving the “unfathomable” pay package.
Tesla shareholders had initially voted in favor of the package in June, but McCormick declined to reconsider. The company is also facing an additional $345 million payment to the lawyers who represented Richard Tornetta, a shareholder who sued to rescind the pay package. An appeal to the Delaware Supreme Court can take around a year to be resolved.
Source: https://www.reuters.com/legal/judge-clears-way-musk-appeal-try-restore-56-billion-tesla-pay-2024-12-13