Part 3/9:
A significant obstacle in Musk’s path is a Delaware court decision that voided a vote on his 2018 performance-based compensation plan, a move that Wood described as an ‘unamerican assault on investor rights’. She argued that the court’s intervention, based on a lawsuit from a small group of shareholders, undermines the rights of the company's broader investor base and the recent success Tesla has enjoyed.
Wood expressed hope that the courts would ultimately favor Musk, recognizing the value he’s created and the legitimacy of his incentives. She emphasized that such legal hurdles could set dangerous precedents if they become commonplace, potentially undermining corporate governance and the ability of executives to earn rewards proportionate to their performance.