Tesla Launches Legal Battle to Restore Elon Musk's Compensation Package
Money | June 17, 2024, 10:03 a.m.
Tesla is fighting for legal recognition of a shareholder vote approving Elon Musk's hefty compensation package. The company argues the vote significantly impacts the case challenging Musk's pay package, urging a reevaluation of the legal issues at play. Despite Tesla's claims, shareholder attorneys maintain the ratification has no legal effect on the case and plan to present their argument to the court. Previously, a judge ruled that Musk had undue influence over the 2018 compensation process and that key information was withheld from shareholders. However, Tesla contends that a special board committee reviewed and approved the package in the best interest of shareholders, addressing concerns raised by the court. Ultimately, the court must determine a fee for the shareholder legal team before Tesla can appeal the ruling. The ongoing legal battle raises questions about corporate governance and transparency at Tesla.