Tesla CEO Elon Musk’s USD 56 Billion Pay Plan Rejected By Delaware Court

A Delaware judge has upheld her decision to void Tesla Chief Executive Officer (CEO) Elon Musk’s 2018 USD 56 billion pay package, rejecting his attempt to reinstate it on Monday.

The court ruled that the package was improperly granted, with Chancellor Kathaleen McCormick stating that Musk controlled Tesla and influenced the Board’s decision-making. Efforts by Tesla and Musk to ratify the plan through a shareholder vote were also dismissed. The ruling approved USD 345 million in attorney fees for the lawyers representing Tesla shareholders who challenged the package. Tesla announced plans to appeal, while Musk criticised the court’s decision on X.