Judge Rejects Elon Musk's $56 Billion Tesla Pay Package for Second Time

The Delaware court ruled that Tesla's board failed in its fiduciary duties, dismissing Musk's appeal to reinstate the record compensation plan.

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.