Challenge To Musk's $55B Pay Package Beats Dismissal Bid

Law360 (September 20, 2019, 9:47 PM EDT) -- Delaware's Chancery Court on Friday allowed a proposed class of Tesla Inc. stockholders to go forward with most of their challenge to the approval of a 10-year compensation plan for CEO Elon Musk that's worth up to $55 billion.

Vice Chancellor Joseph R. Slights rejected the majority of Musk's bid to kill the case, saying the investors had adequately alleged that the eye-popping pay package wasn't properly approved and that the amount — "orders of magnitude higher than what other highly paid CEOs earn" — wasn't fair.

Musk had argued the package is based on performance goals that would encourage the...

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