Part 4/10:
He further notes that most companies face similar legal challenges or shareholder votes, and such disputes are often resolved or dismissed. Herbert highlights that Tesla’s board likely acted within standard governance practices, and unless rulings change—such as an overturning of the court decisions by the Delaware Supreme Court—the current process is expected to stand.
This controversy showcases how legal disputes around executive compensation can be exaggerated, especially when the underlying practices are industry-standard. Herbert is confident that the recent rulings will be overturned, and even if not, the impact on Tesla’s operations and leadership compensation will be limited.