A local Naples attorney, Tom Grady, is representing Tesla shareholders in their appeal against Delaware judge Kathaleen St. Jude McCormick’s decision to block a record $56 million pay package for Elon Musk. The judge had ruled that the deal was “unfathomable” and questioned Musk’s influence over the board.
Grady argues that votes matter and that shareholders have twice approved the performance-based pay package, with 72% of voting shares cast in favor both times. He is also challenging a $345 million award to the plaintiff who brought the lawsuit, stating that lawyers are not entitled to fees if they don’t benefit the company.
The largest shareholder Grady represents, Cathie Wood’s Ark Invest, owns about $3 billion in Tesla shares and has voted consistently in favor of the Musk compensation package. The appeal is based on the idea that votes should matter and that shareholders have shown their support for the deal through multiple elections.
Tesla CEO Musk himself described the ruling as “absolute corruption” after the judge’s decision was announced. The company plans to file its own appeal, while Grady believes they are close to resolving the case and predicts it may take a year or more to reach a conclusion.
Source: https://eu.naplesnews.com/story/news/local/2025/01/03/naples-attorney-files-appeal-defends-pay-package-for-elon-musk-at-tesla/77406530007