The upcoming hearing on Elon Musk’s pay package is scheduled for July 8, 2024, and will not take into account the TSLA shareholder vote that supported the 2018 compensation plan.

Earlier this month, during the Annual Stockholder Meeting, Tesla shareholders voted to reapprove Elon Musk’s 2018 pay package. The investors voted in favor of ratifying the 100% performance-based stock option award initially approved by TSLA stockholders in 2018.

Following the meeting, Tesla urged Delaware Judge Chancellor Kathaleen McCormick to reconsider her decision to void Musk’s compensation plan. Tesla’s legal team argues that the shareholders’ reapproval of Musk’s 2018 pay package should influence some of the claims made by the plaintiff, Richard Tornetta’s representation.

The July 8 hearing will focus on the plaintiff’s fee petition and objections to it. Initially, the plaintiff’s legal team requested payment in 27 million TSLA shares, worth billions, but have since reduced their fee proposal to $1.44 billion in cash. Tesla aims to reduce the plaintiff’s legal fees to at least $13.6 million.

The July 8 hearing will not consider the 2024 TSLA investor vote on Musk’s pay package. Both legal teams will present their arguments without mentioning the recent shareholder vote.

Judge McCormick has scheduled a separate meeting for late July or early August to discuss the 2024 TSLA shareholders’ vote on Musk’s pay package. Many Tesla investors believe that discussing the plaintiff’s legal fees may become irrelevant if McCormick overturns her decision after reviewing the TSLA vote.

Below is Judge McCormick’s letter discussing the upcoming hearings from PlainSite.