Legal experts suggest that Tesla’s Elon Musk is still facing a battle to reinstate his $45bn (£35bn) pay package despite shareholders supporting the CEO’s deal.
After a judge in Delaware invalidated the wage pact, investors of the electric car maker re-approved it, with the company’s chairman vowing to take the matter back to court.
There are uncertainties surrounding Musk’s access to an equity-based compensation package.
Lawyers representing Tesla shareholder Richard Tornetta criticized the ratification vote demanded by Musk as “deeply flawed” and vowed to challenge any future claims.
The judge’s decision to throw out Musk’s compensation package in January has led to ongoing litigation challenges.
Experts predict that the legal battle over Musk’s pay package will continue in Delaware, where the company was originally incorporated.
There are concerns about the legitimacy of the vote and its impact on Musk’s compensation ahead.
Musk’s threats of pursuing AI and robotics projects independently could potentially be seen as intimidation of shareholders.
Legal experts suggest that a Delaware court would scrutinize the independence and fairness of Tesla’s updated voting process.
Musk’s new compensation package will now be governed by Texas law as Tesla plans to relocate its legal entity to the state.
Source: www.theguardian.com
