The Delaware Supreme Court is set to review the reinstatement of Elon Musk's $56 billion performance-based stock award from 2018. The court will determine if the original board approval was fair or unduly influenced by Musk's control over Tesla. This case also involves a $345 million legal fee awarded to plaintiff Richard Tornetta, who challenged the board's independence.
Under Musk's leadership, Tesla's market value surged approximately 1,400%. The controversial 2018 compensation plan was initially rescinded in 2023 but was reapproved by shareholders in 2024. The outcome of this review could have significant implications for corporate governance and executive compensation practices.
Delaware Supreme Court to Review Elon Musk's $56B Tesla Compensation
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