Elon Musk Wins Shareholders' Approval for Compensation Package in Tesla's Court Filing

Money | June 28, 2024, 2:44 a.m.

In a recent court filing, Tesla argued that CEO Elon Musk's $56 billion pay package was legally reinstated by shareholders after a Delaware judge initially voided it due to concerns over board influence and lack of transparency. Despite the judge's previous ruling, shareholders voted to reapprove the compensation plan, leading Tesla to seek a final order in favor of the defendants. The legal battle also involves a dispute over the attorneys' fees, with shareholder Richard Tornetta's legal team requesting billions in Tesla stock as compensation. The judge has set a date for oral arguments on the matter, with Musk's pay package consisting of performance-based stock options valued at $56 billion. This ongoing dispute highlights the complexities of executive compensation and corporate governance in the modern business landscape.