A Delaware judge on Friday questioned lawyers for Tesla about why the company asked shareholders to vote on a $55 billion pay package for its chief executive, Elon Musk, after she had struck it down in January.
The judge, Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery, noted at a hearing in Wilmington that there was no legal precedent for the company’s decision, which led to an overwhelming shareholder vote in favor of the compensation package in June.
“This has never been done before,” she said in an exchange with a lawyer representing Mr. Musk and Tesla’s directors.
“There is no Delaware law on this, correct?”The lawyer, David E. Ross, acknowledged there was no exact precedent for having shareholders overturn a judge’s decision in similar cases.
But he asserted that the June vote showed that Tesla’s shareholders were willing to award Mr. Musk the package even after being provided a lot more information about how it had been devised.
Persons:
Tesla, Elon Musk, Chancellor Kathaleen St, J . McCormick, ”, David E, Ross
Organizations:
Chancery
Locations:
Delaware, Wilmington, “