Delaware Supreme Court decision

Judge Orders Tesla to Pay $345 Million, Rejects Musk's $56 Billion Pay Package Again

Dec 2, 2024, 10:10 PM

Elon Musk's record-setting $56 billion Tesla compensation package, the largest in U.S. corporate history, has been rejected again by Delaware Chancellor Kathaleen McCormick, even after shareholders voted to reinstate it in June 2024. The judge upheld her prior ruling that the 2018 pay package was improperly granted, stating that the company's board was too influenced by Musk when it was approved. The package, initially valued at $2.6 billion, would now be worth $101.5 billion at current prices. The court also ordered Tesla to pay $345 million in attorneys' fees to the plaintiffs, rejecting a $5.6 billion fee request. Tesla shares fell more than 1% in after-hours trading following the news. Tesla is expected to appeal the ruling to the Delaware Supreme Court.