The Delaware judge overseeing Elon Musk’s record Tesla pay package case has received assurances from the electric vehicle company that they will not contest her ruling during an upcoming shareholder vote. Chancellor Kathaleen McCormick voided Musk’s $56 billion pay package, prompting concerns from the shareholder legal team that Tesla might try to overturn the decision in a Texas court.
However, Tesla dismissed these concerns as “rank speculation” and assured the judge that they would not seek to circumvent her ruling. The company’s shareholders are set to vote next month to “ratify” the pay package that was voided by McCormick and to reincorporate Tesla in Texas.
The legal team representing the shareholders had requested orders to prevent their case from being undone in Texas, but McCormick found comfort in Tesla’s statements that they would respect her jurisdiction. The upcoming vote on June 13 will determine if shareholders still support Musk’s pay package and if Tesla should move its legal home from Delaware to Texas.
McCormick will also decide on the shareholder’s request for a $6 billion legal fee from Tesla before any potential appeals can be made. The hearing on the legal fee is scheduled for July 8. Attorneys for the shareholder and the company have not yet provided comments on the matter.