Delaware Court Denies Elon Musk $56 Billion Pay Package

A Delaware judge has upheld her ruling denying Elon Musk a $56 billion pay package, despite a shareholder vote supporting its reinstatement. Chancellor Kathaleen McCormick stated that Musk's influence over Tesla's board invalidated the compensation agreement, which was deemed excessive and unfair to shareholders. Tesla has announced plans to appeal the ruling, claiming it undermines shareholder control and disregards their vote. The judge's opinion emphasized that the board was not entitled to 'reset' the pay package and noted material misstatements in the company's proxy statement. This ongoing legal battle raises significant questions about corporate governance and executive compensation dynamics. The appeal process could take a year, with Tesla's shares experiencing a slight decline following the ruling.