A group of Tesla shareholders, including Cathie Wood’s Ark Investment Management LLC, have filed a notice of appeal in the Supreme Court of Delaware over the court’s decision to block Elon Musk’s $56 billion pay package. The decision was made by Delaware Chancery Court Judge Kathaleen St. J. McCormick in January 2024, who voided the package citing that Tesla’s board was influenced by the CEO when they adopted the plan in 2018.
Tesla shareholders had previously voted to reinstate the package in June, but McCormick again ruled against it in December. The company has since stated its intention to appeal the decision to the Delaware Supreme Court. Elon Musk responded to the news, saying “Awesome,” on social media platform X, stating that the original lawsuit was brought by a law firm using a puppet shareholder and that he believes Tesla’s real shareholders are supporting his appeal.
Musk previously criticized the class action lawsuit filed by minor shareholder Richard Tornetta, which led to the CEO’s compensation package being rescinded. He argued that the lawsuit did not represent Tesla shareholders as claimed, citing that over 70% of shareholders voted in favor of the pay package in both 2018 and June 2024. The appeal is now set to be heard by the Delaware Supreme Court, which will determine whether Musk’s $56 billion pay package should be reinstated or remain blocked.
Source: https://www.benzinga.com/25/01/42802287/cathie-woods-ark-investment-appeal-decision-to-void-tesla-ceos-pay-package-musk-says-awesome