Although shareholders have backed chief executive’s remuneration deal, doubts remain over whether he will be able to access share-based package
Tesla’s battle to reinstate Elon Musk’s $45bn (£35bn) pay package is far from over, according to legal experts, despite shareholders backing the chief executive’s remuneration deal.
Investors in the electric carmaker re-ratified the pay deal on Thursday after it had been struck down by a judge in the US state of Delaware. However, doubts remain over whether Musk will be able to access the share-based package.
The lawyer representing Tesla shareholder Richard Tornetta, who brought the lawsuit that led to Musk’s pay package being nullified, said in a statement on Thursday that the vote was “deeply flawed”.
“We believe that the ratification vote that Elon demanded and coerced is deeply flawed as a matter of law, legally ineffective and does not impact our case. We will respond to any arguments raised in due course,” said Greg Varallo, a partner at the law firm Bernstein, Litowitz, Berger & Grossmann.
Judge Kathaleen McCormick threw out Musk’s pay package in January, ruling that the board members had been insufficiently independent from the Tesla CEO while negotiating the package.
