US business news
Tesla Tries Again Over $56 Billion Pay For Elon Musk
Tesla has once again contacted its shareholders to approve CEO Elon Musk’s controversial $56 billion pay package, originally set in 2018.
A Delaware judge dismissed this pay arrangement in January, labeling it excessive and critiquing the company’s board for inadequate justification.
Despite the pay package involving no salary or cash bonuses, it promises rewards contingent on Tesla’s market cap escalating to $650 billion over a decade.
Currently, Tesla boasts a market value of over $500 billion, per LSEG data.
The rejection of Musk’s pay by Kathaleen McCormick, a judge of Delaware’s court of chancery, deemed the payment "an unfathomable sum" and unfair to shareholders.
"We do not think that what the Delaware court said is how corporate law should or does work"
Tesla’s request for a re-vote seems to be a strategy to gather more backing for Musk’s compensation and to publicly challenge the court’s verdict.
The January decision is still subject to appeal.
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