A Delaware judge has rejected a multibillion compensation package for Tesla CEO Elon Musk, despite shareholders approving it. The ruling comes after the judge previously struck down the same deal in January due to concerns over Musk’s close relationships with certain board members.
The compensation package, worth 303 million shares of Tesla stock, was contingent on meeting certain milestones under Musk’s leadership. However, Chancellor Kathaleen McCormick ruled that shareholders were not entitled to “hit reset” and restore the original pay package, citing the risk of endless litigation.
The decision leaves Musk without a $108 billion payout, which would have been equivalent to 12 figures at the closing price of a single Tesla stock. Tesla has expressed its intention to appeal the ruling, with CEO Elon Musk stating that the court’s decision is “wrong” and that he will continue to fight for his rightful compensation.
The judge’s decision highlights the challenges faced by high-profile executives in securing their compensation packages, and underscores the importance of fair and transparent negotiations between CEOs and shareholders.
Source: https://www.foxbusiness.com/markets/elon-musks-whopping-12-digit-tesla-compensation-package-rejected-delaware-judge