Alexandra Merz and Kristen Netten, among other shareholders, are rallying to reinstate Elon Musk’s $56 billion compensation package, challenging a Delaware Court of Chancery ruling that deemed it void. They contend the court’s decision lacks financial justification and advocate for an extended vesting period to safeguard smaller shareholders. Musk appreciates their support. This development comes after a legal dispute questioning the independence of Tesla’s board in approving the package, with the plaintiff’s counsel seeking a $6 billion remedy. Musk is anticipated to appeal the decision.
Shareholder Alexandra Merz, in a letter on X, disputes the financial merit of the court’s decision to nullify Musk’s 2018 pay package. Merz contends that the anticipated invalidation lacks a solid basis for calculating potential financial gains. She has formally requested Tesla’s board to reinstate a comparable compensation package for the CEO. Criticizing the plaintiff counsel’s $6 billion stock compensation request, Merz urges the court to impose an extended vesting period to protect the interests of small shareholders, including herself.
Kristen Netten, another shareholder, called on fellow shareholders in a post on X, urging them to join the campaign. In her message, she requested others to express their reasons for opposing the disproportionate representation of shareholders in the ruling and criticized the proposed lawyer’s payment of 6 billion Tesla shares as an additional insult.
Elon Musk responded on Monday via X, expressing his gratitude to the shareholders for the campaign with a simple “Thanks :).”
Promoted on X with the hashtag #DelawareCourt81, a writing campaign has emerged following a significant ruling last month. Delaware Court of Chancery judge Kathaleen McCormick nullified Elon Musk’s 2018 pay package, valued at about $56 billion, citing insufficient independence of the board and deeming the process leading to the grant and its value as “unfair” to other shareholders. Musk is expected to appeal the decision to nullify his pay.
The plaintiff’s lawyers, who successfully challenged Musk’s pay, have approached the court, seeking Tesla shares worth $6 billion. They also requested immediate permission to sell these shares without a holding period. Approval for this request is pending McCormick’s decision.
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