HomeMarket News Elon Musk Expresses Gratitude to Tesla Shareholders for Support Against Voiding $56B...

Elon Musk Expresses Gratitude to Tesla Shareholders for Support Against Voiding $56B Pay Package

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Shareholders Stand Strong

A group of Tesla Inc TSLA shareholders are rallying behind CEO Elon Musk as they push back against the nullification of his $56 billion compensation package by the Delaware Court of Chancery. One notable shareholder, Alexandra Merz, expressed her concern about the financial implications of the court’s decision.

What Happened: In a persuasive letter shared on X, Merz underscored the lack of financial benefits stemming from voiding Musk’s pay package.

She also called out the plaintiff’s counsel for seeking a substantial compensation in Tesla stock, advocating for a prolonged vesting period to protect the interests of small shareholders like herself.

Another shareholder, Kristen Netten, urged fellow shareholders to join the movement against the court ruling, emphasizing the need for fair representation and consideration.

Musk’s Grateful Response

Musk Responds: In a show of gratitude, Musk expressed his thanks to the supportive shareholders on X, displaying a humble β€œ:)” in response to their efforts.

Significance of the Campaign

Why It Matters: Dubbed under the #DelawareCourt81 hashtag, the campaign gains traction following the recent ruling by Delaware Court of Chancery judge Kathaleen McCormick. The judgment nullified Musk’s 2018 hefty pay package, citing governance concerns and inequitable treatment of shareholders. Musk intends to challenge this decision.

Furthermore, the plaintiff’s legal team sought $6 billion worth of Tesla shares as a reward for contesting Musk’s compensation, with a plea to sell the shares immediately if granted by McCormick.

Image Credits: Photos on Shutterstock

Continue exploring Benzinga’s Future Of Mobility coverage by following this link.

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