Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Elon Musk’s appeal starts to restore his $56B Tesla pay package

% of readers think this story is Fact. Add your two cents.


On Tuesday, March 11, 2025, Elon Musk’s appeal to restore his $56 billion Tesla pay package started with claims that the lower court judge who rescinded the 2018 compensation made a few mistakes in the case.

“That counterintuitive result defies settled principles of Delaware law, sound corporate governance, and common sense,” said the opening appeal brief.

Elon Musk, plus current and former Tesla directors, are defendants in this case. In their appeal brief, Musk and the Tesla directors argue that Delaware Chancery Court Judge Kathleen McCormick incorrectly applied the entire fairness standard to assess the $56 billion pay package and make her ruling.

According to the Delaware Supreme Court, the entire fairness standard reviews corporate transactions, including those between corporations and their controlling stockholders. The entire fairness standard may apply when a controlling stockholder receives a non-ratable benefit, or there is a potential conflict of interest.

In January 2024, Judge McCormick rescinded Elon Musk’s 2018 pay package. She said the $56 billion compensation plan was unfair to Tesla shareholders because the company’s directors at the time were “beholden” to Musk. The Delaware Chancery Judge also believed that Tesla withheld information from investors before they approved Musk’s 2018 pay package.

Musk’s appeal brief states that Judge McCormick applied the entire fairness standard because Musk controlled pay negotiations at Tesla. In addition, she determined that ordinary business relationships among directors were in conflict and faulted Tesla’s disclosures before the 2018 vote that approved Musk’s $56 billion pay package.

According to Reuters, Judge McCormick’s decision to apply the entire fairness standard granted a “license to sue” to Tesla shareholders. As such, Richard Tornetta was able to file a case in 2018, when he owned nine TSLA shares.

Tornetta filed a derivative suit or a lawsuit filed by a shareholder or multiple shareholders on behalf of a corporation against the corporation’s directors, officers, or third parties who breached their duties.

The post Elon Musk’s appeal starts to restore his $56B Tesla pay package appeared first on TESLARATI.


Source: https://www.teslarati.com/elon-musk-appeal-56-billion-tesla-pay-package/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.