Elon Musk, CEO of Tesla and SpaceX and owner of X (formerly Twitter), speaks at The New York Times’ annual DealBook Summit on November 29, 2023 in New York City.
Michael M. Santiago | Michael M. SantiagoGetty Images
Delaware judge invalidates $56 billion pay package on Tuesday Tesla CEO Musk ruled that the company’s board “failed to ensure that the compensation plan was fair.”
Tesla shares fell about 3% in after-hours trading on Tuesday following the ruling in a lawsuit filed by the electric car maker’s shareholder Richard Tornetta.
“Plaintiffs are entitled to vacate,” Delaware Chancery Court Judge Kathhaleen McCormick wrote in her ruling, agreeing that Tesla’s board improperly set Musk’s compensation package.
“The parties will agree on the form of a final order implementing this decision and submit a joint letter identifying all issues, including costs, that need to be resolved to reach a conclusion at the trial stage,” McCormick said.
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