Part 4/8:
Adding complexity to Musk's compensation situation are the legal battles he faces, notably with Judge McCormack in Delaware, who has often presided over Tesla-related cases. Critics note that the judicial leniency awarded to plaintiffs in Delaware courts has resulted in skewed judgments against Musk, creating a structural problem that could deter corporate governance in the state. The pervasive nature of litigation risks has prompted Tesla to relocate its incorporation to Texas, providing a new opportunity for more favorable conditions, including revisiting Musk’s compensation package.