Elon Musk’s colossal $101 billion pay package was once again struck down by a Delaware judge, marking another setback in the billionaire’s fight to secure the record-breaking compensation deal. The package, which was based on Tesla’s stock price soaring and meeting ambitious revenue and earnings targets, has the potential to significantly boost Musk’s wealth. Despite this legal defeat, it is unlikely to impact Musk’s status as the world’s richest man, largely due to the continued rise in Tesla’s stock value.
The court’s rejection of Musk’s pay deal follows a similar ruling earlier in January, when Judge Kathaleen St. J. McCormick found the package unfair to Tesla’s shareholders. In her latest 103-page opinion, McCormick ruled that Musk had unduly influenced Tesla’s board to approve the pay deal in 2018, arguing that the board’s decision was flawed and contrary to established law. McCormick also criticized the idea that a stockholder vote could overturn a judicial ruling, emphasizing that the outcome of the trial should stand.
Musk’s legal team has expressed its intention to appeal the ruling to the Delaware Supreme Court, which could prolong the legal battle. Meanwhile, Musk voiced his frustration with the decision on social media, calling the process “absolute corruption” and arguing that shareholders, not judges, should determine company votes. His pay structure was designed to reward him with stock options based on Tesla’s growth, and despite the court’s ruling, Musk still holds the options, which remain valuable due to Tesla’s stock performance.
