A Delaware judge ruled Monday that Tesla CEO Elon Musk is still not entitled to $56 billion in compensation, even though the electric car company's shareholders voted in favor of reinstatement. handed down a judgment.
The ruling, by Chancellor Court Judge Kathleen McCormick, follows a January ruling that struck down the pay package as excessive, surprising investors and threatening Mr. Musk's position at the world's most valuable automaker. It created uncertainty about the future.
Tesla said in a court filing that a judge subsequently upheld a June shareholder vote to uphold the pay package for Musk, the company's driving force and responsible for much of its fundraising, and reinstated his compensation. said that it should be done. Tesla and its shareholders argued that Musk had reached the milestones he had originally set out when developing his pay package.
Mr. McCormick also ordered Tesla to pay $345 million to the lawyers who filed the lawsuit, far short of the billions he had originally requested.
Tesla originally devised Musk's pay package in 2017, with conditions under which Musk would receive 12 different tranches of stock options depending on whether the company met certain revenue and market goals. Shareholders approved the package by a wide margin in 2018, but one investor filed a lawsuit claiming the board was misleading and the package was unfair.
Mr. McCormick previously ruled that the process by which Tesla's board determined Mr. Musk's pay was “seriously flawed.”
Mr. McCormick found that the board was filled with personal conflicts and overlapped with some of Mr. Musk's closest associates, including Mr. Musk's former divorce lawyer.
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