”Was the richest person in the world overpaid?” That is the question that the Delaware Court of Chancery answered in its Jan. 30, 2024, decision in the shareholder derivative action Tornetta v. Musk, et al., C.A. No. 2018-0408-KSJM, 2024 WL 343699 (Del. Ch. Jan. 30, 2024). According to the Chancery Court, what developed into the richest compensation plan in the history of public markets was not “fair” to Tesla and its stockholders.

Originally published on Reuters Legal News and Westlaw Today - February 8, 2024.