Judge Kathaleen McCormick had already rejected this envelope in January, denouncing its allocation by a committee whose members were all close to the entrepreneur, the richest man in the world.
Published on 03/12/2024 08:35
Reading time: 2min
A judge in Delaware (United States) again rejected, Monday, December 2, a $55.8 billion compensation plan awarded by Tesla to its boss Elon Musk, although this amount was approved by a majority of shareholders . The car manufacturer condemned this court decision in the evening and announced on X that it would appeal it. “Shareholders should control corporate votes, not judges”for his part reacted the multi-billionaire Elon Musk.
Judge Kathaleen McCormick had already rejected this envelope in January, denouncing its allocation by a committee whose members were all close to the entrepreneur, the richest man in the world. She had thus acceded to the request of a Tesla shareholder, who had taken legal action to have this remuneration invalidated.
Despite this first cancellation, the board of directors chose to submit this plan a second time to the general meeting, the shareholders adopting it by 72%. After this vote in June, Tesla proposed “a meeting between the parties to discuss a proposal for the future” of the affair.
The initial judgment “wasn't saying Musk shouldn't be paid for his work at Tesla”wrote the magistrate in the decision rendered Monday. “Tesla and Musk could have proposed a new plan that they deemed fair and accepted that the court only overturned part of it” of the amount initially allocated, she continued. “Instead, they tried to get the same plan approved by relying on vague theories about Delaware law.”regretted the magistrate. She also decided on Monday to award $345 million in compensation to the lawyer of the shareholder who initiated the procedure, at the expense of Tesla.
