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

Dec 2, 2024, 10:18 PM

Elon Musk's $56 billion compensation package from Tesla was once again rejected by Delaware Chancellor Kathaleen McCormick, despite shareholders voting twice to approve it, most recently in June 2024. McCormick upheld her previous ruling that the pay package was improperly granted, citing that the board was "too much under the influence" of Musk when it was adopted in 2018. The court also ordered Tesla to pay $345 million in attorney fees to the plaintiffs' attorneys, rejecting their initial $5.6 billion fee request. Tesla shares fell 1.2% in after-hours trading following the news.