Tesla and Elon Musk's $56 billion pay package
Tesla and Elon Musk are attempting to restore Musk's $56 billion pay package using an obscure provision in Delaware's corporate law, despite a previous court ruling voiding the deal. Legal experts are divided on whether this strategy will be successful or lead to more litigation.
Key Points
- Using a provision in Delaware corporate law to fix procedural defects
- Proposing a shareholder vote to potentially restore Musk's pay package
- Raising questions about boardroom decisions and fiduciary duties
Pros
- Attempting to address procedural defects in the pay deal
- Seeking shareholder approval for a revised pay package
Cons
- Risk of inviting more shareholder lawsuits
- Uncertainty around rewarding Musk for past performance