JUDGE: Elon Musk Can’t Keep Tesla Pay Package Worth More Than $55 Billion
January 31, 2024 8:52AM AKST
FILE - Tesla and SpaceX Chief Executive Officer Elon Musk speaks at the SATELLITE Conference and Exhibition in Washington, on March 9, 2020. Tesla shares tumbled more than 7% in early trading on Friday, June 3, 2022, on a report that Musk is considering laying off 10% of the electric automakers’ workers. (AP Photo/Susan Walsh, File)
DOVER, Del. (AP) — A judge says Elon Musk must give up a compensation package awarded by Tesla’s board of directors that is potentially worth more than $55 billion.
The ruling in a Delaware court Tuesday comes five years after a shareholder lawsuit targeted the Tesla and the company’s directors.
They were accused of breaching their duties to the maker of electric vehicles and solar panels, resulting in a waste of corporate assets and unjust enrichment for Musk.
Plaintiff’s lawyers argued that the pay package was dictated by Musk and was the product of sham negotiations with directors who were not independent of him.
Defense attorneys countered that the pay plan was fairly negotiated by a compensation committee whose members were independent.
