Tesla’s (NASDAQ:TSLA) attorney argued at the Delaware Supreme Court to reinstate Elon Musk’s $56 billion compensation package after a lower court in January 2024 voided it. The attorneys argued that shareholders approved the pay deal in one of the most informed votes in Delaware history that reaffirmed their support for the pay package.
Tesla’s attorney, Jeffrey Wall, said the shareholder vote would resolve the case, while opposing counsel argued it would set a precedent for endless litigation.
“This was the most informed stockholder vote in Delaware history,” Jeffrey Wall, an attorney for Tesla, told the justices, according to a Reuters report. “Reaffirming that would resolve this case.”
Musk did not attend the hearing but could still receive tens of billions under a backup $25 billion replacement plan if the original award remains voided.
The ruling could also have major implications for Delaware’s corporate law and its Court of Chancery, which has been criticized for being unsupportive of entrepreneurs.
So far this year, Tesla (NASDAQ:TSLA) stock price has managed a gain of ~8%, while the broader S&P 500 (SPY) climbed ~14%.