Tesla Calls On The Plaintiff In Elon Musk’s Pay Dispute To Accept “Sobering Reality” And Cease Offering “Hyperbole, Rhetoric, And Distortion”
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As the next major legal showdown between Tesla and one of its disgruntled shareholder on the issue of Elon Musk's compensation package continues to draw closer to its inevitable climax in the Delaware Court of Chancery, tempers on both sides of the proverbial aisle appear frayed, replete with acrimonious recriminations and counter allegations.
For the benefit of those who might not be aware, Tesla shareholders recently re-ratified Elon Musk's desired $48 billion compensation scheme with a convincing majority. Tesla intends to use this vote, which is quite symbolic in nature, to try to convince the Delaware Court of Chancery to withdraw its punitive injunction against Musk's pay package.
Related Story Tesla Calls On The Delaware Court Judge To Approve Elon Musk’s Recently Ratified Pay Package, But Statutory Authorization Can’t Cure Breaches Of Fiduciary Duty Under The Delaware Law
Bear in mind that Tesla underwent a trial in the Delaware Court of Chancery in 2022, where one of its shareholders, Richard Tornetta, asserted that Elon Musk's 2018 compensation plan should be voided by the court as it was a result of sham negotiations between a beholden board and an increasingly assertive CEO. At the conclusion of that trial in early 2024, the Delaware Chancery Court Chief Judge, Kathaleen St. J. McCormick, voided Elon Musk's compensation plan, prompting Elon Musk to declare that Tesla would abandon Delaware and reincorporate in Texas.
This brings us to the crux of the matter. In a new filing with the Delaware Court ahead of the 08th of July hearing on a $6 billion claim filed by Tornetta's lawyers as remuneration for their services, Tesla appears to be going for a no-holds-barred approach against the opposing party by urging it to accept the "sobering reality" that Elon Musk's pay package was recently re-ratified by "72% of
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