Posted 1/31/2024, 1:32:00 AM
Judge Rules Elon Musk's $56B Tesla Pay Unfair, Citing Flaws in Approval Process
- Delaware judge ruled Elon Musk's $56B Tesla pay package from 2018 was unfair and should be undone
- Shareholders sued Musk, alleging the process leading to the package was improper
- Judge said approval process was "deeply flawed" due to Musk's close ties with compensation committee members
- Musk said benchmarks seemed extremely unlikely at the time; board saw bonuses as way to keep distracted Musk focused
- Judge Tesla proved Musk uniquely motivated by ambitious goals, but doesn't justify largest compensation plan ever