77 articles | last updated: Dec 4 06:04:00
Judge Kathaleen McCormick reaffirms her earlier ruling, citing conflicts of interest and procedural flaws, while Tesla plans to appeal the decision.
- Delaware Chancery Court Judge Kathaleen McCormick has upheld her January ruling invalidating Elon Musk's 2018 Tesla pay package, valued at $56 billion when approved.
- The judge cited conflicts of interest among Tesla's board members and insufficient disclosure to shareholders as key reasons for the decision.
- Tesla shareholders overwhelmingly voted in June to ratify the pay package, but McCormick ruled that a post-ruling shareholder vote cannot retroactively resolve legal issues.
- Tesla plans to appeal the decision, with analysts predicting the case could escalate to the Delaware Supreme Court or even federal courts.
- The ruling has sparked broader discussions about corporate governance, shareholder rights, and the potential for companies to relocate their incorporation from Delaware to other states like Texas.
People, Places and Things In This Story
- Elon Musk CEO of Tesla Motors
- Tesla, Inc. Automotive company
- Delaware US state
- Texas US state
- Delaware Supreme Court Court
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