A judge in Delaware has for the second time rejected Tesla’s record $56 billion pay package for Elon Musk, despite shareholder approval.
A judge in Delaware has for the second time rejected Tesla’s record $56 billion pay package for Elon Musk, despite shareholder approval.
«The court’s decision is wrong and we will appeal,» X wrote on the company’s page after Judge Kathleen McCormick overturned a vote by the majority of Tesla’s shareholders who voted twice to pay the Tesla executive «as much as it is worth».
The announcement added that the decision, unless overturned, means that judges and plaintiffs' lawyers are running Delaware companies, not their rightful owners, the shareholders.
«Shareholders should control company votes, not judges,» Musk added indignantly at X.
Tesla stock options made Musk the richest man in the world. The package is now worth about $100 billion after a significant increase in Tesla’s share price in recent weeks, writes the Daily Mail.
Musk and Tesla lawyers argued that a shareholder vote in June, in which 75 percent of shareholders agreed to pay Musk, cleared the way for the payout. However, Judge McCormick upheld her January ruling, in which she ruled that Tesla’s board members were too heavily influenced by Musk and that shareholders were not adequately informed about the CEO’s pay.
