HomeMarket NewsElon Musk Condemns Legal Vultures Seeking Tesla Shares As Compensation

Elon Musk Condemns Legal Vultures Seeking Tesla Shares As Compensation

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Musk’s Scorn Against Legal Demands

The visionary Elon Musk did not hold back on Friday, unleashing his frustration on the lawyers seeking a hefty $6 billion worth of Tesla Inc shares as their reward for contesting his $56 billion pay package at the groundbreaking EV company.

The Irony and Broken System

In a scathing message on X, previously known as Twitter, Musk branded the attorneys as β€œevil” and highlighted the apparent irony in their actions. These were the same lawyers who had argued against the extravagance of his compensation but were now demanding an astronomical sum themselves.

Musk’s Systemic Critique

Never one to mince words, Musk also took aim at the system itself, branding it as β€œbroken.” He urged companies to consider incorporating outside of Delaware, suggesting that Texas or Nevada would provide better governance options for shareholders.

The Legal Maneuvering

The legal saga unfolded as attorneys from Bernstein Litowitz Berger & Grossmann, Friedman Oster & Tejtel, and Andrews & Springer of Wilmington represented Tesla shareholder Richard Tonetta in contesting Musk’s 2018 compensation package. The presiding judge, Kathaleen McCormick, invalidated the massive pay package in February, citing lack of board independence from Musk and unfair advantages given to him over other shareholders.

Legal Fallout and Musk’s Response

In a bold move, the attorneys have now requested compensation in the form of Tesla shares amounting to $6 billion from a Delaware state court. Musk is expected to appeal the ruling nullifying his pay package and may contest the exorbitant fee request. If approved, the lawyers could potentially become major stakeholders in Tesla.

Significance and Implications

This legal battle highlights the complexity and high-stakes nature of corporate governance. Musk’s outspoken criticism of the legal demands underscores the challenges faced by visionary leaders in navigating the intricacies of the legal system, particularly in high-profile cases.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Photo via Shutterstock

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