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Tesla insists Elon Musk won legal battle over his $56 billion pay package

Tesla insists Elon Musk won legal battle over his $56 billion pay package

Tesla insists Elon Musk won his legal battle over his $56 billion pay package as shareholders voted to approve the massive wage.

The company made the claim even though a judge rescinded the 53-year-old billionaire’s payday earlier this year,

according to a court filing made public on Friday. (28.06.24)

It comes two weeks after Tesla shareholders ratified the 2018 stock options package.

The vote followed a January ruling by a Delaware judge voiding the compensation, citing that Musk improperly controlled the negotiation process and that Tesla misled shareholders about key details.

Ongoing uncertainty over the pay deal is hitting Musk’s relationship with Tesla, which faces slower sales and increased competition.

X owner Musk has hinted he might develop some products outside the company if he does not secure a larger ownership stake.

In its proposal for how the judge, Chancellor Kathaleen McCormick of Delaware’s Court of Chancery, should craft a final order to implement the January ruling, Tesla argued the order should state: “Judgment is entered for the defendants.”

The shareholders’ legal team, however, wants Judge McCormick to uphold her original ruling voiding Musk’’ pay package and order Tesla to pay potentially billions of dollars worth of Tesla stock as a legal fee award.

Tesla has countered, suggesting a fair fee might be as low as $13.6 million.

On Thursday, Judge McCormick instructed the parties involved to begin preparing briefs detailing their views on the impact of the shareholder vote on the case.

She also requested the parties agree on a date in late July or early August for oral arguments on the issue.

The judge will hear arguments regarding the legal fee on 8 July, and it may take her several weeks to rule.

Even if she does not reverse her January decision, she may acknowledge that the shareholder vote demonstrated a preference for Musk’s compensation package.

It could weaken the plaintiff’s attorney-fee request, based on the purported value they provided to the company by challenging the pay package.

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