Category: Technology Governance

The Delaware Supreme Court is weighing the fate of Elon Musk’s record $56 billion Tesla pay package in a landmark case that has triggered corporate flight to Texas and Nevada. With Tesla now proposing a $1 trillion compensation plan, the outcome could redefine executive pay and shareholder rights nationwide.

The legal battle over Elon Musk’s unprecedented $56 billion compensation package from Tesla has reached its climactic stage, with Delaware’s highest court now considering an appeal that could reshape corporate governance standards across America. Current and former Tesla directors, who are defendants in the case, maintain they committed no wrongdoing and argue that Chancellor Kathaleen McCormick misinterpreted both facts and law in her January 2023 ruling voiding the pay deal. Notably, Musk himself is not expected to attend the proceedings, shifting focus squarely onto the legal arguments surrounding what remains the largest executive compensation package in history.

The Corporate Exodus From Delaware