https://finance.yahoo.com/news/tesla-objects-5-6-billion-160418435.html
WILMINGTON, Delaware (Reuters) - The legal team that voided Elon Musk's
record Tesla pay package deserves a tiny fraction of the $5.6 billion
legal fee they requested because their lawsuit provided almost no benefit
for the company, the electric automaker argued in court papers on Friday.
Tesla said the legal team for Richard Tornetta, the shareholder whose
lawsuit led to a January ruling voiding Musk's $56 billion pay package,
should be paid as little as $13.6 million for their work, which began with
a 2018 complaint.
Musk's remuneration is the most ever granted to a CEO in the U.S. at
least.
Tesla also said if shareholders vote to ratify the voided pay package at
the company's annual meeting next week, then the lawsuit's main benefit
was to have informed investors of the flawed negotiation process for
awarding pay so they could then correct it with a new vote.
"Importantly, undisputed market evidence confirms (the) plaintiff achieved
little to no discernible value for Tesla or its stockholders," Tesla said
in its filing with the Delaware Court of Chancery.
The shareholder's legal team comprised three law firms, Bernstein Litowitz
Berger & Grossmann and Friedman Oster & Tejtel, both based in New York,
and Andrews & Springer of Wilmington, Delaware.
The objection to the legal fee comes as the company tries to rally
shareholders to back a proposal to restore Musk's pay package.
Tesla is also asking shareholders to approve moving the company's legal
home to Texas, where it has its headquarters, from Delaware, which Musk
lambasted after the pay ruling.
Chancellor Kathaleen McCormick voided the 2018 pay deal in January because
she found after a trial that Musk improperly dominated the Tesla board
negotiations to arrange the $56 billion compensation, which she described
as "unfathomable."
The legal team that brought the case asked McCormick to order Tesla to pay
them with about 29 million Tesla shares as a portion of the 266 million
shares that they said Musk would return to Tesla as a result of his pay
being voided.
Tesla argued that the ruling did not result in the return of any stock to
the company because Musk never exercised any of the stock options, the
form of payment underlying his compensation.
Hundreds of Tesla shareholders have written to the company or to the court
to object to the legal fee request.
One shareholder with 19,000 shares, Amy Steffens, filed a formal objection
to the fee request and is represented by the Munger Tolles & Olson law
firm.
(Reporting by Tom Hals in Wilmington, Delaware; editing by Peter Henderson
and Rod Nickel)
--
We live in a time where intelligent people are being silenced so that
stupid people won't be offended.
Durham Report: The FBI has an integrity problem. It has none.
No collusion - Special Counsel Robert Swan Mueller III, March 2019.
Officially made Nancy Pelosi a two-time impeachment loser.
Thank you for cleaning up the disaster of the 2008-2017 Obama / Biden
fiasco, President Trump.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp. Obama sold out heterosexuals for Hollywood
queer liberal democrat donors.
President Trump boosted the economy, reduced illegal invasions, appointed
dozens of judges and three SCOTUS justices.
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