On December 2, 2024, Delaware’s Court of Chancery once again found itself at the center of global attention. Judge Kathaleen McCormick rejected Tesla’s attempt to reinstate Elon Musk’s $56 billion compensation package — even after shareholders had voted to ratify it following her initial ruling in January.

The case now heads to the Delaware Supreme Court, where oral arguments on October 15 will test not just Musk’s pay, but Delaware’s long-standing role as the nation’s corporate capital. What happens in Dover could shape how the business world views the state’s fairness, freedom, and economic future for years to come.

The rulings against Musk’s pay package, as described by the judge, rested on familiar governance red flags: an outsized payout pushed through despite process flaws, conflic

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