Delaware judge again rejects Musk's $55.8 billion compensation plan
ChainCatcher news, according to X Daily News, a Delaware Chancery Court judge has again dismissed Tesla CEO Musk's $55.8 billion compensation plan. The judge ruled based on the following three points:
Shareholder votes cannot retroactively validate breaches of fiduciary duty, especially in transactions with conflicts of interest;
Tesla did not raise the ratification argument during the trial, making it procedurally invalid;
The proxy materials used to solicit votes were misleading, undermining the legitimacy of the voting.
Additionally, the court also rejected Tesla's attempt to use shareholder votes as new evidence to overturn the previous ruling. The court emphasized that post-trial evidence cannot be used in this manner, as allowing such a strategy would weaken the deterrent effect of lawsuits aimed at holding corporate leaders accountable for misconduct.
