EV giant Tesla Inc. TSLA and CEO Elon Musk can now reportedly begin legal appeals to try and reinstate the CEO’s $56 billion pay package.
What Happened: Chancellor Kathaleen McCormick of the Court of Chancery has issued an order opening a 30-day window for Tesla and Musk to appeal to the Delaware Supreme Court, Reuters reported on Friday.
The Delaware Chancery Court Judge ruled in January that the $56 billion pay package would be voided given that Tesla's board was influenced by Musk when they adopted the plan in 2018. Tesla shareholders subsequently voted again to reinstate the package in June.
However, McCormick again ruled against the package earlier this month.
Why It Matters: Tesla said earlier this month in a post on X that the company deems the ruling to be wrong and intends to appeal to the Delaware Supreme Court while adding that the judge overruled a supermajority of shareholders. However, the Delaware Supreme Court can take around a year to issue a ruling.
Reuters on Friday also noted that Tesla would be able to appeal McCormick’s order directing the company to pay $345 million to the attorneys who represented the minor shareholder who sued to rescind the pay package.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Photo courtesy: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
