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Judge clears way for Musk appeal to try to restore $56 billion Tesla pay
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Judge clears way for Musk appeal to try to restore $56 billion Tesla pay
Dec 13, 2024 2:14 PM

WILMINGTON, Delaware, Dec 13 (Reuters) - A Delaware

judge cleared the way on Friday for Elon Musk and Tesla to begin

legal appeals to try to reinstate the chief executive's

record-breaking $56 billion pay package from the electric

carmaker.

The order by Chancellor Kathaleen McCormick of the Court of

Chancery opens the 30-day window for an appeal to the Delaware

Supreme Court.

Musk and the board that approved the 2018 pay package can

appeal McCormick's ruling in January that they had breached

their fiduciary duty to investors by approving a compensation

plan she described as "unfathomable" in its size.

On Dec. 2, she declined to reconsider that ruling despite a

June vote by Tesla shareholders in favor of the package.

Tesla will also be able to appeal McCormick's order

directing the company to pay $345 million to the attorneys who

represented Richard Tornetta, the shareholder who sued in 2018

to rescind the pay package.

The Delaware Supreme Court can take around a year to issue a

ruling.

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