There was a foolish quantity of drama within the run-up to Tesla‘s annual shareholder assembly on Thursday. The corporate is about to carry a vote on “re-ratifying” the $56 billion compensation package deal awarded to Elon Musk in 2018, which was struck down by a Delaware Chancery Courtroom choose earlier this 12 months. It’ll additionally maintain a vote whether or not the corporate will change the situation the place it’s included from Delaware to Texas.
A few of Tesla’s largest boosters are calling on the corporate’s “retail army” of shareholders to vote in favor of each, however with particular concentrate on Musk’s compensation. It’s not clear what tangible affect the result of both vote could have. However Tesla executives and staff — together with some who mainly by no means publish on social media — are merely begging for votes.
Throughout the breathless longform posts, Areas audio conferences, podcasts and myriad different calls to motion, the main focus has been skilled on the concept that Musk is owed this compensation as a result of he hit the targets agreed to on the outset. “A deal is a deal,” Tesla posted to its CEO’s social media platform X.
But, nearly nobody is discussing the substance of chancellor Kathaleen McCormick’s January ruling and its dominant theme: Musk holds a lot sway over Tesla and its board of administrators that there was no substantial negotiation when the corporate hammered out this take care of him in 2017-2018.
As a substitute, there have been accusations from the Tesla devoted of her being a “radical activist judge” — accusations which can be simply defanged as you learn by way of her examination of the proof of the case.
So, some homework then! To the Tesla followers, haters, shareholders and rubberneckers, right here it’s once more, embedded under. McCormick’s 201-page opinion is an intensive however lucid learn. It’s value brushing up on it once more earlier than the vote takes place. On the very least, it’s a primer for the authorized battles which can be certain to proceed after Thursday’s vote.
Tornetta v. Musk Submit-Trial Opinion by Sean O’Kane on Scribd
