Elon Musk’s bid to reinstate his $56 billion pay package has been rejected by a Delaware judge. In January, Chancellor Kathaleen McCormick ruled that the compensation plan was “deeply flawed” due to Musk controlling Tesla and dictating terms of his own compensation.
Tesla had conducted a shareholder vote in June, asking investors to ratify Musk’s 2018 CEO pay plan. However, the judge upheld her previous ruling, stating that a stockholder vote cannot revise an existing judgment. The Delaware court also approved a $345 million attorney fee award for the lawyers who successfully sued on behalf of Tesla shareholders.
The decision comes after Musk had called the ruling “absolute corruption” and expressed his intention to appeal. Despite this setback, Musk’s net worth has increased significantly in recent weeks due to Tesla shares soaring 42% since Donald Trump’s election victory.
Source: https://www.cnbc.com/2024/12/02/tesla-ceo-elon-musk-loses-bid-to-get-56-billion-pay-package-reinstated.html