Delaware Judge Strikes Down Musk's $56 Billion Tesla Compensation as Excessive
-
Elon Musk's $56 billion compensation package from Tesla was struck down by a Delaware judge, who ruled it was unfair and exceeded corporate governance bounds.
-
The 2018 package awarded Musk huge stock options tied to Tesla hitting ambitious targets, but lacked oversight and safeguards against excessive pay according to the judge.
-
The judge ruled the Tesla board failed in its fiduciary duty by not properly analyzing or negotiating the package, which lacked independent compensation consultants.
-
Musk's lawyers plan to appeal, arguing the package was fair and crucial to Tesla's success in reaching a $1 trillion valuation under his leadership.
-
After the ruling, Musk suggested on social media that Tesla should reincorporate in Nevada or Texas rather than Delaware, to give shareholders more say on compensation matters.