News

Lawyers Request $5.6 Billion in Tesla Stock

1 Mins read

Lawyers who successfully argued against Tesla CEO Elon Musk’s massive pay package have requested $5.6 billion in company stock as legal fees. The Delaware judge presiding over the case will decide on the award, which could be the largest ever.

Justification for the Request

The attorneys defended Tesla shareholders in a case that concluded in January, working on a contingency basis for over five years. They argue that the requested sum is justified, given the significant benefit to Tesla. If they had lost the case, they would have received nothing.

Legal Victory and Ruling

Judge Kathaleen St. Jude McCormick ruled the compensation package sought by Musk as illegal in January. The attorneys’ successful argument contended that Musk was improperly involved in negotiations for the pay package, which would have greatly increased his stake in Tesla.

Practical Considerations

The requested stock award, which represents 11% of Tesla’s value, would not impact the company’s financials and is tax-deductible. Additionally, the attorneys are seeking $1.1 million in expenses related to the case.

This legal battle highlights the significant role lawyers play in corporate governance and executive compensation disputes.

Related posts
News

North Korea Accused of Stealing Billions Through Cyberattacks to Fund Nuclear Program

3 Mins read
An international report reveals North Korea’s extensive cyber operations, detailing billions stolen through cryptocurrency theft, fake remote tech jobs, and malware, all…
News

The silent war: When virtual attacks inflict real-world devastation

3 Mins read
As digital transformation accelerates worldwide, cyberspace has become vital to the economy and society — but also a high-risk arena for data…
News

'Ether Caught Fire': ETH Surged as Capital Fled Bitcoin in Q3, CoinGecko Report Finds

2 Mins read
Ethereum (ETH) emerged as the frontrunner in crypto’s third-quarter recovery, leaving bitcoin (BTC) behind as capital flowed into altcoins, DeFi protocols, and…

Leave a Reply

Your email address will not be published. Required fields are marked *

47 + = 55