Pay row: Billionaire Tesla boss Elon Musk
Tesla has asked shareholders to approve a £45billion pay deal for billionaire Elon Musk - just months after the package was struck down in court.
The same day payday loans (https://sobrouremedio.com.br/author/xdfjudith50), decided in 2018, would be the biggest in US corporate history.
But in a setback for Musk, 52, judge Kathaleen McCormick, of Delaware's Court of Chancery, said he controlled the board through his personality and influence - meaning that his package could not be decided through a fair process.
‘Musk was the paradigmatic "superstar CEO" and dominated the process that led to board approval,' McCormick wrote in her decision.
Musk also had ‘extensive ties' with the officials negotiating the pay award, she said. Tesla has now called for investors to back the deal anyway.
‘We do not agree with what the Delaware Court decided, and we do not think that what the Delaware Court said is how corporate law should or does work,' wrote chairman Robyn Denholm in a regulatory filing. ‘If it is legally advisable, we suggest subjecting the original 2018 package to a new shareholder vote.'
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The filing also urged investors to approve Tesla's decision to move the company's state of incorporation from Delaware to Texas.
Disgruntled shareholder Richard Tornetta filed a lawsuit against Tesla and its directors, claiming that Musk's pay was unfair.
It sets rewards based on Tesla's market value as Musk, worth an estimated £143bn, does not receive a salary. Directors argued that the aim was to keep Musk incentivised as he juggles his other companies including X, formerly Twitter, and satellite firm Space X.
Yet the drama comes at a testing time for Tesla which this week laid off 10pc of its workforce in the face of supply issues and slowing demand.
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