Tesla Shareholder, Plans to Demand a Stay of Pay Order

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A Tesla shareholder won a ruling last month that overturned the CEO's $56 billion compensation plan.
A Tesla shareholder won a ruling last month that overturned the CEO's $56 billion compensation plan.

Elon Musk and the Tesla shareholder who won a verdict last month overturning the CEO’s $56 billion compensation package will ask a judge to postpone her finding until an appeal is heard, according to a letter to the court sent on Tuesday by the shareholder’s counsel.

Parties Would Agree to a Delay:

The shareholder’s attorney, Greg Varallo, said the two parties would agree to a delay if they can reach an agreement on an appeal bond.

The letter is the first sign that Musk wants to challenge the verdict, which he has criticized on social media, stating that he will seek shareholder approval to change Tesla’s state of incorporation to Texas, where the company is headquartered.

Before Musk can file an appeal, the two sides will propose a final order for approval by Judge Kathleen McCormick, which will include a request for a legal fee.

Tesla to pay the fine:

Given the enormity of the verdict, Tesla will pay that fine, which is likely to be among the highest ever. Tesla will most likely oppose it.

Varallo stated that he wants to file the fee petition by March 1.

If McCormick approves the fee and final ruling, Musk will have 60 days to file an appeal with the Delaware Supreme Court, which will likely take at least six months to decide.

James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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