Elon Musk’s $50 Billion Tesla Pay Can’t Be Reinstated, Delaware Judge Rules - The New York Times

Elon Musk’s $50 Billion Tesla Pay Can’t Be Reinstated, Delaware Judge Rules

"The judge said she would not reverse her decision to strike down the compensation package after Tesla shareholders approved Mr. Musk’s pay a second time.

Dec. 2, 2024 Updated 6:06 p.m. ET

Elon Musk’s pay package for running Tesla helped make him the world’s richest person.Johnathan Ernst/Reuters

A Delaware judge on Monday upheld her earlier ruling that a giant pay package that Tesla awarded its chief executive, Elon Musk, must be rescinded.

The pay, in the form of stock options, was worth more than $50 billion and helped make Mr. Musk the richest person in the world.

The judge, Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery, struck down the award in January, ruling that shareholders had not been properly informed of its details and that members of Tesla’s board were not sufficiently independent.

But lawyers for Tesla and Mr. Musk argued that a second shareholder vote in June in favor of the package cleared the way for effectively reinstating it.

This is a developing story. Check back for updates."

Elon Musk’s $50 Billion Tesla Pay Can’t Be Reinstated, Delaware Judge Rules - The New York Times