Musk’s record $56bn pay deal rejected for second time
Tesla chief executive Elon Musk’s record-breaking $56bn (£47bn) pay award will not be reinstated, a judge has ruled.
The decision in the Delaware court comes after months of legal wrangling, despite being approved by shareholders and directors in the summer.
Judge Kathaleen McCormick upheld her January decision, in which she argued that board members were too heavily influenced by Mr Musk.
Reacting to the ruling, Mr Musk wrote on X: “Shareholders should control company votes, not judges.
Tesla vowed to appeal against the ruling, saying the decision was “wrong”.
“This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware companies rather than their rightful owners – the shareholders,” the electric car company said in a post on X.
Judge McCormick said the pay package would have been the largest ever for the boss of a listed company.
Tesla failed to prove the pay package, which dates back to 2018, was fair, she said.
Tesla vowed to appeal against the ruling, saying the decision was “wrong”.
“This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware companies rather than their rightful owners – the shareholders,” the electric car company said in a post on X.
Judge McCormick said the pay package would have been the largest ever for the boss of a listed company.
Tesla failed to prove the pay package, which dates back to 2018, was fair, she said.