Musk's $55.8-B Pay Package Verdict Hits Tesla Chairwoman, Robyn Denholm

A recent Delaware court ruling striking down Elon Musk's monumental $55.8 billion Tesla pay package has sent shockwaves through the company, affecting not only Musk but also Tesla's board chair, Robyn Denholm.

Denholm specifically drew attention due to her substantial earnings from Tesla options sales, totaling $280 million in 2021 and 2022. I Photo: CeBIT Wikimedia Commons

The verdict, a response to a shareholder lawsuit alleging breach of fiduciary duty, was delivered by Chancellor Kathaleen McCormick and was reported by Emma Hincliffe and Joseph Abrams for Fortune.

The decision, which Musk vehemently opposed, has significant implications for Tesla's future, with Musk expressing intentions to reincorporate Tesla in Texas instead of remaining in Delaware.

However, another key figure affected by the ruling is Robyn Denholm, who has served as Tesla's board chair since 2018.

Denholm, a seasoned Australian telecom executive and partner at Canva investor Blackbird, stepped into the role of board chair after Musk was compelled to step down as part of an SEC settlement.

The SEC's decision aimed to mitigate market disruption and protect Tesla shareholders.

However, Denholm's tenure as chair has now come under scrutiny due to the court's ruling on Musk's pay package.

Chancellor McCormick attributed the rejection of Musk's pay package to a flawed approval process, placing much of the blame on the board and its compensation committee.

Denholm specifically drew attention due to her substantial earnings from Tesla options sales, totaling $280 million in 2021 and 2022.

McCormick highlighted Denholm's testimony, where she described the windfall as "life-changing" compared to her previous annual earnings of $3 million. The court's decision has sparked varied reactions, including Musk's fury, Denholm's silence, and others' defense of the chair.

Notably, Cathie Wood of ARK Invest, a significant Tesla investor, vouched for Denholm's integrity in the aftermath of the ruling. The fallout from this verdict underscores the complex dynamics at play within Tesla's leadership structure and its implications for the company's future direction.

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