Elon Musk: Judge Halts ‘Unbelievable’ $56bn Tesla Pay Agreement

A judge in Delaware has invalidated a $56 billion pay deal awarded to Elon Musk by Tesla in 2018. The lawsuit was brought by a shareholder who argued that the payment was excessive. Judge Kathaleen McCormick ruled that the approval of the pay package by the Tesla board was flawed. Musk, who is the CEO and a major shareholder of Tesla, posted on his social media platform X, formerly known as Twitter, advising against incorporating companies in Delaware. The pay deal was the largest ever in corporate history and contributed to Musk’s status as one of the world’s richest individuals. Tesla directors argued that the deal was necessary to ensure Musk’s continued dedication to the company, but the judge ruled that they failed to prove that shareholders were fully informed about the vote. The compensation was described as an “unfathomable sum” that was unfair to shareholders. The ruling can be appealed to the Delaware Supreme Court. Tesla shares fell by around 3% in extended New York trade following the announcement.