A group of Florida shareholders has appealed the decision by Delaware Chancellor Kathaleen St. J. McCormick to block what would be the largest CEO compensation deal in US history. The notice of appeal, filed on December 31, targets the ruling that blocked the record-breaking pay package and also claims the $345 million award for the chancellor’s attorneys’ fees is excessive.
Tesla shareholders had voted to reapprove the pay package twice – in 2018 and 2024 – with over 70% of votes in favor. However, Delaware Chancellor McCormick ruled in their favor, siding with stockholders who brought a derivative lawsuit against Tesla. Now, the Florida investors are seeking to re-enfranchise Tesla shareholders and make their votes count.
The appeal aims to overturn the chancellor’s decision and restore the original compensation deal. The case is Tornetta v. Musk, Del., No. 534,2024.
Source: https://news.bloomberglaw.com/securities-law/elon-musks-pay-deal-decision-appealed-to-delaware-supreme-court