Tesla renews legal fight to reinstate Elon Musk’s $56B pay package after shareholders back deal

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Tesla launched a caller bid to unafraid ineligible reinstatement of Elon Musk’s arguable $56 cardinal salary package connected Monday – days aft nan company’s shareholders voted to ratify nan record-setting agreement.

In January, Delaware Chancery Court Judge Kathaleen McCormick voided Musk’s stock-based compensation plan, which she referred to arsenic an “unfathomable sum.” The package was challenged successful a suit revenge by Tesla shareholder Richard Tornetta.

Tesla’s lawyers based on that nan 2 sides should make their ineligible statement regarding nan imaginable implications of past Thursday’s ballot astatine nan company’s yearly meeting, wherever shareholders backed nan deal.

Elon Musk is CEO of Tesla. Getty Images

“The support of ratification by Tesla’s stockholders importantly impacts nan claims and issues successful this action, including nan court’s last judgment,” Tesla attorneys said successful a missive to McCormick past Friday.

An lawyer for nan plaintiff shareholder fired back, arguing that nan ballot had “no ineligible effect” connected nan judge’s earlier determination to void nan $56 cardinal package. The lawyer is group to record a ineligible little explaining his reasoning by Friday.

Tesla has acknowledged that shareholders’ ratification of nan voided woody had created a “novel” result – and that it was unclear if nan ballot would punctual McCormick to reverse course.

When issuing her determination past January, McCormick questioned whether nan package was genuinely basal for Tesla to clasp Musk’s services arsenic CEO.

The judge besides blasted nan process by which Tesla’s committee initially approved nan package and recovered that nan institution had withheld cardinal accusation from shareholders.

Tesla is fighting to legally reinstate Elon Musk’s salary package. AP

Tesla shareholders besides approved a solution astatine nan yearly gathering to alteration nan company’s authorities of incorporation to Texas from Delaware. Nearly 90% voted successful favour of nan move.

Musk had backed nan alteration successful nan contiguous aftermath of nan judge’s determination to nix his compensation.

Last Friday, Musk shared an image of a vanilla-frosted expanse cake pinch nan words “Vox Populi, Vox Dei” – Latin for “the sound of nan group is nan sound of God” – written successful reddish letters, on pinch a large heart.

Delaware Chancery Court Chancellor Kathaleen McCormick is pictured. Eric Crossan via Wikipedia

“Sending this barroom to Delaware arsenic a parting gift,” Musk wrote connected X.

With Post wires

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