WILMINGTON, Delaware (Reuters) – A Delaware choose cleared the way in which on Friday for Elon Musk and Tesla to start authorized appeals to attempt to reinstate the chief government’s record-breaking $56 billion pay package deal from the electrical carmaker.
The order by Chancellor Kathaleen McCormick of the Court docket of Chancery opens the 30-day window for an attraction to the Delaware Supreme Court docket.
Musk and the board that accredited the 2018 pay package deal can attraction McCormick’s ruling in January that that they had breached their fiduciary obligation to traders by approving a compensation plan she described as “unfathomable” in its measurement.
On Dec. 2, she declined to rethink that ruling regardless of a June vote by Tesla shareholders in favor of the package deal.
Tesla can even be capable of attraction McCormick’s order directing the corporate to pay $345 million to the attorneys who represented Richard Tornetta, the shareholder who sued in 2018 to rescind the pay package deal.
The Delaware Supreme Court docket can take round a yr to situation a ruling.
(Reporting by Tom Hals in Wilmington, Enhancing by Rosalba O’Brien)
