Part 4/9:
Fiduciary duty refers to the obligation of company directors to act in the best interests of shareholders. The crux of the lawsuit is that Elon Musk, who was both a significant shareholder and CEO at the time of approving his compensation, might have been in a conflict of interest.
Legal experts suggest that if Musk was indeed a controlling party, the approval process should have involved disinterested and independent board members or a formalized process—steps apparently not followed here. The implication is that the vote may have been biased or insufficiently scrutinized, potentially invalidating the approval of Musk's package.