A Delaware judge has ruled that Tesla CEO Elon Musk is not entitled to a $56 billion pay package, despite a shareholder vote in June that favored restoring it. Judge Kathleen McCormick previously deemed the pay package excessive and struck it down earlier this year. In her recent ruling, she emphasized that allowing the board to reset the situation would lead to endless litigation. Tesla's shares dropped 1.4% following the announcement, reflecting investor concerns over Musk's compensation and leadership. The judge also ordered Tesla to pay $345 million in legal fees to the plaintiffs, significantly less than the $6 billion initially sought. Musk and Tesla have the option to appeal the decision to the Delaware Supreme Court, which could prolong the legal battle for up to a year.
Business
United States
Court Denies Elon Musk's $56 Billion Tesla Pay Package Despite Shareholder Vote
2024-12-03T13:24:19.542Z
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A Delaware judge has ruled that Elon Musk is not entitled to a $56 billion pay package, despite a shareholder vote in favor of it, citing excessive compensation and fundamental errors in the vote.
Clam Reports
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Aljazeera |
