Judge Rejects Musk's $56B Tesla Pay Package Again, Orders Tesla to Pay $345M in Fees

Dec 2, 2024, 10:43 PM

Elon Musk's attempt to reinstate his $56 billion Tesla pay package, originally approved in 2018 and the largest in U.S. corporate history, has been rejected again by Delaware Chancellor Kathaleen McCormick, despite overwhelming shareholder approval in June 2024. The judge upheld her prior ruling that the compensation plan was improperly granted, stating that a shareholder vote cannot retroactively validate breaches of fiduciary duty. In addition, the court ordered Tesla to pay $345 million in attorney fees to the plaintiffs, rejecting a $5.6 billion fee request. Following the news, Tesla's stock fell slightly in after-hours trading.