, US court voids Elon Musk’s $56bn Tesla compensation -

US court voids Elon Musk’s $56bn Tesla compensation

Elon Musk, the CEO of Tesla, had his $56 billion compensation package revoked by a US State of Delaware judge on Tuesday. The judge sided with a shareholder who argued Musk was overpaid.

The Delaware Chancery Court judge decided that Richard Tornetta, a shareholder in Tesla, was “entitled to rescission,” allowing the annulment of Musk’s massive 2018 compensation deal, which could have been valued up to $55.8 billion.

The parties now have to “confer” and then file a joint letter “identifying all issues, including fees, that need to be addressed to bring this matter to a conclusion at the trial level,” according to Judge Kathaleen McCormick.

Following the release of the 200-page report, the creator of electric vehicles saw a more than three percent decline in share price during after-hours trading.

“Never incorporate your company in the state of Delaware,” said Elon Musk, the richest man in the world, in a comment posted on X, the former Twitter, shortly after the decision was made.

An inquiry for comment was not immediately answered by Musk’s attorney.

The shareholders’ representative, Greg Varallo, said in a statement shared with AFP, “We are enormously grateful for the court’s thorough and extraordinarily well-reasoned decision in turning back the Tesla board’s absurdly outsized pay package for Musk.”

The dilution from this enormous pay package will be eliminated, directly benefiting Tesla stockholders from the court’s diligent work, he continued.

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