Part 3/9:
Legal Foundations and Court Proceedings
This case isn't just a trivial dispute—it's about whether Musk's compensation was ethically and legally justified. A key point is the role of the court and the judge's skepticism. Earlier this year, the court's chancellor expressed doubt about resolving the case on the basis of undisputed facts alone, indicating the matter may genuinely require a trial to understand the nuances.
The plaintiff, Richard Tornetta, has filed a comprehensive 96-page legal brief arguing that Tesla's board failed in its fiduciary duty to minority shareholders by approving the highest-ever CEO compensation in history.