Tesla's law firm drafts Delaware bill that could salvage Musk pay package
The legislation would amend Delaware General Corporation Law and could pave the way for the reinstatement of Musk's 2018 CEO pay package at Tesla.
A law firm that represents Tesla and Elon Musk has written proposed legislation that would alter Delaware corporate law, according to a person directly familiar with the drafting of the bill who asked to remain unnamed in order to speak about the matter.
The proposed legislation, drafted by Richards, Layton & Finger, or RLF, would amend Delaware General Corporation Law, and if adopted, could pave the way for the reinstatement of Musk's 2018 CEO pay package at Tesla, worth tens of billions of dollars in options.
"Statutory changes are necessary to restore the core principles that have been the hallmark of Delaware for over a century and ensure that Delaware remains the preeminent jurisdiction for incorporation," Lisa Schmidt, president of RLF, said in a statement.
A spokesperson for the law firm said RLF's role in the legislation draft was not done on behalf of any specific client.
The bill was introduced in the Delaware General Assembly on Monday and would require approval by the state's two chambers as well as Gov. Matt Meyer before it could become law.