Tesla has told the Delaware Supreme Court that Elon Musk’s $56 billion pay package should have been restored last year through a shareholder vote, as the company appeals a lower court ruling that rescinded the CEO’s record compensation.
Tesla’s attorney Jeffrey Wall argued on Wednesday that a vote by the company’s shareholders to reinstate Musk’s pay was “the most informed stockholder vote in Delaware history” and should be recognised to resolve the case. The hearing marks the final stage of one of the largest corporate legal battles in recent U.S. history.
The dispute follows a January 2024 ruling by Delaware’s Court of Chancery, which invalidated Musk’s 2018 compensation plan. Chancellor Kathaleen McCormick found that the Tesla board lacked independence from Musk and that shareholders did not have sufficient information when approving the package. Applying a strict legal standard, she deemed the pay unfair to investors.
Tesla is also appealing a separate ruling by the lower court that rejected the shareholders’ vote to restore the package as legally invalid. Current and former Tesla directors denied wrongdoing and argued that the Chancery Court misinterpreted both the facts and the law.
The case carries broader implications for Delaware corporate law and its Court of Chancery, historically a key venue for business disputes but recently criticised for being unfavourable toward influential entrepreneurs.
Musk did not attend the court session, which was held in a special courtroom accommodating around 65 attendees, mostly lawyers.
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U.S. negotiators Steve Witkoff and Jared Kushner will visit Russia then Ukraine over the weekend, Russian state news agency TASS has reported, citing an unnamed source. Ukrainian President Volodymyr Zelenskyy has also said American envoys will visit the capitals of both countries.
U.S. negotiators Steve Witkoff and Jared Kushner have arrived in Moscow for peace talks on the Russia-Ukraine conflict, two people familiar with the matter said. They were met by Russian Presidential Envoy Kirill Dmitriev.
Start your day informed with the AnewZ Morning Brief. Here are the top stories for the 4th of September, covering the latest developments.
U.S. efforts to squeeze Iran’s economy through an oil blockade and sanctions are becoming increasingly difficult for Tehran to withstand, according to three senior Iranian sources. Washington is escalating pressure in hopes of securing concessions in future negotiations.
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Volkswagen’s supervisory board has approved a major overhaul aimed at cutting 100,000 jobs by 2030 as the German carmaker battles weaker sales, falling profits and intensifying global competition.
Chinese Premier Li Qiang has called on American companies to expand their presence in China and pledged that Beijing would address their "reasonable concerns," as China looks to stabilise trade ties with Washington ahead of President Xi Jinping's planned visit to the U.S. later this month
Apple is entering a new era as Tim Cook steps down as chief executive after 15 years at the helm, handing the technology giant's leadership to longtime executive John Ternus.
Volkswagen is heading towards a decisive showdown with labour representatives as Germany's largest carmaker weighs sweeping restructuring measures that could lead to factory closures and tens of thousands of job losses.
Online fast-fashion retailer Shein is seeking to raise up to $1.77 billion in a Hong Kong IPO after its valuation fell around 70 per cent from its private-market peak four years ago.
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