There has been a foolish quantity of drama within the run-up to Tesla‘s annual shareholder assembly on Thursday. The firm is about to carry a vote on “re-ratifying” the $56 billion compensation bundle awarded to Elon Musk in 2018, which was struck down by a Delaware Chancery Court choose earlier this yr. It may also maintain a vote whether or not the corporate will change the situation the place it’s included from Delaware to Texas.
Some of Tesla’s greatest boosters are calling on the corporate’s “retail military” of shareholders to vote in favor of each, however with particular concentrate on Musk’s compensation. It’s not clear what tangible affect the end result of both vote could have. But Tesla executives and workers — together with some who mainly by no means publish on social media — are merely begging for votes.
Across the breathless longform posts, Spaces audio conferences, podcasts and myriad different calls to motion, the main target has been skilled on the concept 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.
Yet, 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 cope with him in 2017-2018.
Instead, there have been accusations from the Tesla devoted of her being a “radical activist choose” — accusations which are simply defanged as you learn by 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 a radical however lucid learn. It’s price brushing up on it once more earlier than the vote takes place. At the very least, it’s a primer for the authorized battles which are certain to proceed after Thursday’s vote.
Tornetta v. Musk Post-Trial Opinion by Sean O’Kane on Scribd
