Tue Dec 03 01:36:01 UTC 2024: ## Delaware Judge Upholds Rejection of Elon Musk’s $100 Billion Tesla Pay Package

**Wilmington, DE** – A Delaware judge has definitively rejected Tesla CEO Elon Musk’s multibillion-dollar compensation package, reaffirming an earlier ruling that deemed the deal unfair to shareholders. Chancellor Kathaleen St. Jude McCormick of the Delaware Court of Chancery dismissed Tesla’s arguments based on a shareholder vote to reinstate the package, stating that the company’s legal theories were “unprecedented” and contradicted established law.

The judge’s 103-page opinion found that Tesla’s board hadn’t adequately protected shareholder interests and had made material misstatements regarding the effects of the shareholder vote. Despite shareholders overwhelmingly voting to reinstate the 2018 pay deal in June, McCormick ruled that this vote could not overturn her initial decision. She rejected Tesla’s attempts to introduce new facts after the initial ruling, emphasizing that allowing such practices would lead to endless litigation.

The decision, which also awarded $345 million in legal fees to the plaintiff, sent Tesla shares down 1.4 percent in after-hours trading. Tesla, calling the ruling “wrong,” has vowed to appeal. On X (formerly Twitter), Elon Musk criticized the judge, claiming shareholders, not judges, should control company votes.

Musk’s 2018 compensation package, initially valued at $56 billion, is now estimated to be worth over $101 billion due to Tesla’s stock surge. The package structured his compensation in Tesla stock options tied to achieving specific company milestones. He reached all these targets, solidifying his status as the world’s richest man. The judge’s ruling, however, stands as a significant legal setback for both Musk and Tesla.

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