Tesla CEO Elon Musk’s $56 billion pay package deal was struck down as soon as once more. In a ruling on Monday, Delaware Chancery Court docket Decide Kathaleen St. J. McCormick upheld her choice to dam the compensation plan over issues about conflicts of curiosity following its approval in 2018.
After warning shareholders in June that Musk might depart the corporate if his pay package deal isn’t accepted, Tesla held a vote in hopes of reversing the decide’s choice. Shareholders voted to approve the hefty compensation, however this nonetheless wasn’t sufficient to persuade the decide to reinstate it.
The choice states that Musk has “no procedural floor for flipping the result of an antagonistic posttrial choice primarily based on proof they created after trial.” It additionally calls claims that shareholders can change the result of a courtroom choice “doubtful typically and unquestionably false” on this state of affairs.
Decide McCormick granted $345 million to the legal professionals representing the Tesla shareholders who sued over the $56 billion plan. Musk is predicted to attraction the choice.
Even with out the package deal, Musk nonetheless stays the richest man on the planet, and Tesla shares proceed to soar following Donald Trump’s win within the US Presidential Election.
