After Delaware Court of Chancery judge Kathaleen McCormick refused to read the letters addressed to her by several Tesla shareholders regarding its nullification of Tesla CEO Elon Musk's 2018 compensation package worth $56 billion, investors are looking at new ways of campaigning, including a floral tribute to shareholder rights at the steps of the court.
What Happened: Earlier this month, several Tesla shareholders, who were upset with the Delaware court’s nullification of Musk’s 2018 pay package worth a maximum value of about $56 billion, wrote letters to Judge McCormick saying they see no financial merit for themselves in the ruling.
Alexandra Merz was one of the shareholders. "The anticipated invalidation of the 2018 pay package due to the court ruling does not provide a solid foundation for calculating potential financial gains," Merz wrote in her letter while adding that she has already submitted a written request to Tesla's board requesting reinstatement of a similar compensation package for the CEO.
The letter-writing campaign intended to “respectfully and firmly” state the reasons why the shareholders believed the ruling nullifying Musk’s package did not represent them proportionately.
However, Bloomberg reported on Tuesday that McCormick is not reading the letters written to her by the shareholders as they are non-parties in the litigation as part of which she nullified Musk’s package. The judge instead wrote to lawyers on both sides that they recommend a process for handling the letters.
The judge nullified Musk’s 2018 pay package in January after finding the board to be insufficiently independent of Musk and the governance process leading to the grant as well as the value to be “unfair” to other shareholders.
New Course Of Action: Merz is now considering whether to organize a floral tribute to shareholder rights at the steps of the court, she said on X. Interestingly, Musk has liked the shareholder’s post.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
