A Delaware judge has allowed Elon Musk and Tesla to begin legal appeals to reinstate the chief executive’s $56 billion pay package, the largest in corporate history.
Chancellor Kathaleen McCormick of the Delaware Court of Chancery issued an order on Friday, opening a 30-day window for an appeal to the Delaware Supreme Court.
The appeal challenges McCormick’s January ruling, which found Musk and Tesla’s board in breach of their fiduciary duty to investors when they approved the 2018 compensation plan. The judge described the plan as “unfathomable” in its size.
On December 2, McCormick declined to reconsider her ruling, despite a June vote by Tesla shareholders supporting the package.
Tesla will also be able to appeal McCormick’s separate order directing the company to pay $345 million in legal fees to the attorneys of Richard Tornetta, the shareholder who sued in 2018 to nullify the pay package.
The Delaware Supreme Court typically takes about a year to issue a decision following an appeal.
