Tesla CEO Elon Musk is not backing down in his fight to uphold his record $56 billion compensation deal with Tesla. After a court ruling voided the deal, Musk has filed an appeal that will now be reviewed by Delaware’s Supreme Court.
The legal battle stems from Musk’s 2018 pay package, which was deemed the largest CEO compensation deal in history. Last month, Delaware’s Chancery Court upheld its decision to nullify the deal, stating that it was not fair to Tesla shareholders. Additionally, the court awarded $345 million in legal fees to the lawyers who brought the case and rejected Musk’s attempt to overturn the ruling through a shareholder vote.
This appeal is just the latest development in a six-year legal dispute that has raised questions about corporate governance and executive power. Tesla’s legal team and the lawyers representing the investor who brought the case will continue to argue over the validity of Musk’s compensation in the coming months as the case, Musk v. Tornetta, is reviewed by Delaware’s top court.
The outcome of this appeal will have significant implications not only for Musk and Tesla but also for the broader landscape of executive compensation and corporate governance. Stay tuned for updates as this legal saga unfolds.