Tesla loses bid to reinstate Elon Musk’s record $56bn pay package

[Pelican Press 0]

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Tesla loses bid to reinstate Elon Musk’s record $56bn pay package

Tesla CEO Elon Musk’s record-breaking $56bn (£47bn) pay award will not be reinstated, a judge has ruled.

The decision in the Delaware court comes after months of legal wrangling and despite it being approved by shareholders and directors in the summer.

Judge Kathleen McCormick upheld her previous decision from January, in which she argued that the board were too heavily influenced by Mr Musk.

Tesla and Mr Musk can still appeal against the decision. Tesla has been contacted for comment.

Ms McCormick said the pay package would have been the largest ever for the boss of a listed company.

She said that Tesla ******* to prove the pay package, which dates back to 2018, was fair.

A shareholder vote on the payment passed by 75% in June, but Ms McCormick did not agree the pay should be so large despite what she called Tesla’s lawyers’ “creative” arguments.

“Even if a stockholder vote could have a ratifying effect, it could not do so here,” she wrote in her opinion.

The judge also ruled the Tesla shareholder who brought the case against Tesla and Mr Musk should receive $345mn in fees but not the $5.6bn in Tesla shares they asked for.

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