Overview

• Delaware Chancellor Kathaleen McCormick upheld her January decision to void Elon Musk's $56 billion Tesla pay package, citing flawed approval processes and undue influence by Musk over the board.
• Tesla shareholders had reapproved the pay package in June, but the court ruled that the second vote could not overturn the initial legal decision.
• The judge criticized Tesla's use of newly created evidence, such as the second shareholder vote, as a violation of procedural norms in corporate law.
• Musk and Tesla plan to appeal the ruling to the Delaware Supreme Court, arguing that shareholders should have the ultimate authority over company decisions.
• The court also awarded $345 million in legal fees to the attorneys representing Tesla shareholders, significantly less than the $5.6 billion initially requested.