Lawyers representing a Tesla shareholder have successfully argued in a Delaware court that Elon Musk should not receive a $55-billion compensation package for his work at the electric vehicle company. Instead, they contend that a portion of this package should be allocated towards attorney fees. The attorneys from three law firms made their case to a Delaware judge, stating that their litigation work should be compensated at approximately 11% of the pay package, which equates to around $5.96 billion worth of Tesla shares based on the current stock price.
Chancellor Kathleen McCormick of the Delaware Chancery Court now holds the responsibility of determining the amount of the compensation package that can be designated for attorneys' fees. While Tesla and Musk have the option to appeal the decision to void the CEO's stock options, the plaintiff attorneys are seeking a significant portion of the compensation package.
