Tesla has made a last-ditch effort to secure the $56 billion pay package for CEO Elon Musk, which was approved twice by company shareholders, after a Delaware Chancery Court denied the frontman the payday.<\/p>\n
Perhaps one of the biggest issues from a standpoint of being fluent in Tesla-related events has been Musk’s pay package.<\/p>\n
It was approved by shareholders once in 2018<\/a>, and required Musk to oversee various growth tranches that would bring investors value. He completed each of the tranches and was entitled to the pay package.<\/p>\n However, the Delaware Chancery Court decided in January 2024 to rescind the pay package, which Musk had earned, based on a suit filed by a shareholder.<\/p>\n Chancellor Kathaleen McCormick ruled that Tesla’s board lacked independence from Musk when the pay package was approved in 2018, and that it should not be granted<\/a>.<\/p>\n She called it “an unfathomable sum.”<\/a><\/p>\n In response to the pay package’s rejection by Chancellor McCormick, Tesla held a second shareholder vote last year, which once again showed investors were willing to support Musk’s payday. It was approved by shareholders, but it was once again denied by the court.<\/p>\n Today, Tesla attorneys argued to the Delaware Supreme Court that the pay package should be restored because of last year’s vote by shareholders.<\/p>\n Jeffrey Wall, an attorney for Tesla, said (via Reuters<\/em><\/a>):<\/p>\n \u201cThis was the most informed stockholder vote in Delaware history. Reaffirming that would resolve this case. Shareholders in 2024 knew exactly what they were voting.”<\/em><\/p>\n In a response to the decision by the Delaware courts last year, Tesla proposed a new pay package for Musk in September, which would give him a potentially $1 trillion compensation<\/a> plan. It would require Musk to help Tesla reach several performance-based growth milestones, including achieving an $8.5 trillion market cap.<\/p>\n