Elon Musk on Friday he lashed out at the lawyers who requested it Tesla Inc TSLA shares worth $6 billion as payment for successfully challenging his $56 billion pay package at the electric vehicle company.
What happened: “They are evil,” Musk wrote on X, formerly Twitter. The billionaire CEO also called it “so ironic” that lawyers who disputed that his package was too high are now calling for a similar package.
“The system is broken. Better to leave Delaware as soon as possible,” Musk wrote in another post, reiterating his call for companies to incorporate anywhere but Delaware. The billionaire CEO has previously recommended incorporating companies in Texas or Nevada, arguing that this would help shareholders decide on corporate issues.
Bernstein attorneys Litowitz Berger & Grossmann, Friedman Oster & Tejtel and Andrews & Springer of Wilmington represented Tesla shareholders Riccardo Tonetta who challenged Musk’s 2018 compensation package at Tesla with a maximum value of $56 billion. The judge supervising the case, Kathleen McCormickit canceled the package in February after noting that the board of directors was not sufficiently independent from Musk and that the governance process leading to the award, as well as the value of the shares, were “unfair” to other shareholders.
Because matter: On Friday, the lawyers asked a Delaware state court to compensate them with Tesla stock worth $6 billion. Lawyers acknowledged that the sum sought was unprecedented, but argued that it was in line with previous Delaware awards and represented only 11% of the shareholders’ recovery.
Musk is expected to appeal the pay cancellation decision. He can also dispute the compensation request. The lawyers’ request to pay in Tesla stock could make them among the company’s 10 largest shareholders if approved by the judge overseeing the case.
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