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