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Corporate,
Business Law

Dec. 31, 2024

Attorney fees for total victory: Is Musk's Tesla pay case a blueprint?

When attorneys scored a complete victory against Elon Musk's $56 billion Tesla pay package, Chancellor McCormick faced a novel challenge: how to award fees that would reward the win while avoiding an unprecedented windfall.

The New York Times

In her final order in the landmark case challenging "the largest executive compensation award in the history of public markets" -- Tesla's $55.8 billion stock grant to Elon Musk -- Chancellor Kathaleen McCormick declared: "Plaintiff achieved total victory." Tornetta v. Musk, 2024 WL 4930635, at *4 (Del. Ch. Dec. 2, 2024) ("Tornetta").

The court previously ordered rescission of the grant as a rem...

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