Council of Institutional Investors

CII Executive Director Amy Borrus Issues Statement on the Delaware Court of Chancery’s January 30 Ruling on Tesla

Chancellor Kathaleen St. Jude McCormick’s January 30 ruling striking down Tesla’s 2018 compensation package for CEO Elon Musk highlights the important role of state courts and corporate law in ensuring that boards make decisions about CEO pay in a truly independent manner. As reflected in CII’s policies on corporate governance, executive compensation is a critical component of corporate governance and good governance demands that boards be wholly independent from the chief executive when setting and reviewing the CEO’s compensation. 
 

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Click for PDF version. For media inquiries, please contact CII Editor Rosemary Lally.