2024-12-03 09:42:29 :
A U.S. district judge has rejected Tesla CEO Elon Musk’s massive $56 billion compensation package for the second time, Bloomberg reported. While shareholders backed the billionaire’s salary request, the judge noted that the electric carmaker’s board was “unduly influenced” to accept the payment.
It added that the decision by Delaware Chancery Court Judge Kathaleen St. J. McCormick on Dec. 2 was the second time she had ruled against providing Musk with the same exorbitant compensation package. She first knocked it out in January.
Knocked down. again.
Reports indicate that Musk’s record-breaking salary has been blocked again by the same judge, which may deprive the world’s richest man of billions of dollars in net worth.
Judge McCormick upheld his original ruling, saying Musk had undue influence on Tesla’s board of directors when he adopted the billionaire’s plan in 2018.
“There is no doubt that the Board could decide to pay Musk a healthy range of amounts. Instead, the Board caved to Musk’s conditions,” McCormick wrote in the 101-page decision.
The richest man is still
While the ruling rejects the highest-ever pay arrangement for a U.S. corporate executive and could affect the 53-year-old’s wealth, he remains the world’s richest man. His top spot remains untouched as Tesla shares continue to soar as investors bet heavily on the tech mogul’s close relationship with U.S. President-elect Donald Trump.
Thanks to a rise in Tesla’s stock price after the presidential election and a new round of funding for his artificial intelligence startup, Musk’s wealth hit an all-time high last month, surpassing the previous record of $340.4 billion set in November 2021.
The stock option plan was originally worth $2.6 billion and soared to $56 billion when a judge canceled it. At Monday’s closing price, it was worth $101.5 billion. Tesla shares fell in after-hours trading in New York after the verdict was announced.
appeal argument
If the bill stands, McCormick’s decision effectively means Tesla’s board of directors will have to develop a new proposal. However, Tesla said it would appeal to the Delaware Supreme Court. This process can take several months.
Musk also responded on his social media platform X (formerly Twitter), saying: “Absolutely corrupt.”
(With inputs from Bloomberg)
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