Elon Musk’s $56 Billion Pay Package Rejected Again
A judge has ruled that Elon Musk’s record-breaking $56 billion (£47 billion) pay package will not be reinstated.
The decision, issued by a Delaware court, follows months of legal disputes and comes despite the pay deal being approved by Tesla’s shareholders and board members earlier this year.
Judge Kathaleen McCormick reaffirmed her January ruling, which argued that Tesla’s board was excessively influenced by Musk when the compensation package was determined.
Reacting to the verdict, Musk wrote on X: “Decisions about companies should be in the hands of shareholders, not judges.”
Tesla has vowed to challenge the ruling, calling it “incorrect.”
“This decision, if allowed to stand, implies that judges and plaintiffs’ lawyers dictate the operations of Delaware companies, instead of their true owners—the shareholders,” Tesla stated in a post on X.
Judge McCormick highlighted that this pay package would have been the largest ever granted to the CEO of a publicly traded company.
She also noted that Tesla failed to provide sufficient evidence to justify the fairness of the pay arrangement, which dates back to 2018.
