Elon Musk's Tesla Seeks to Rewrite Delaware Law on Executive Pay

Elon Musk, the CEO of Tesla, has had his $100 billion pay package denied by Delaware courts on two occasions. Now, one of the electric vehicle maker's law firms is seeking to change state law in response to these rulings.

Musk has been critical of Delaware's courts, describing them as "unjust" and "out of touch" with the realities of the business world. He has argued that the courts' decisions are hindering Tesla's ability to attract and retain top talent.

The law firm representing Tesla has proposed changes to Delaware's corporate law that would allow for more flexibility in executive compensation packages. The proposed changes would give boards of directors more discretion in determining executive pay, rather than relying solely on shareholder approval.

Delaware is a popular state for incorporation due to its business-friendly laws and courts. However, the state's courts have been criticized in the past for being too favorable to shareholders at the expense of management.

The proposed changes to Delaware's corporate law have been met with some resistance from shareholder advocacy groups, who argue that they would give too much power to corporate boards and limit shareholder input.

Tesla and its law firm have argued that the proposed changes are necessary to ensure that the company can compete with other tech companies for top talent. They have also argued that the changes would not harm shareholders, as the boards of directors would still be accountable to shareholders.

The outcome of this debate remains uncertain, but it is clear that the proposed changes to Delaware's corporate law have the potential to significantly impact the way that executive compensation is determined in the state.