Elon Musk Loses Tesla Pay Package Lawsuit
Jan 31, 2024 04:01
A Delaware judge has ruled against Elon Musk, requiring him to give up a potentially USD 55 billion Tesla pay package. The ruling follows a shareholder lawsuit alleging breach of duty by Tesla's board.
Photograph: Mark Brake / Getty Images.
New York, Jan 31 (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 USD 55 billion.
The ruling in a Delaware court comes five years after a shareholder lawsuit targeted Tesla CEO Musk and the directors. They were accused of breaching their duties to the electric vehicle and solar panel manufacturer, 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 said the pay plan was fairly negotiated by a committee of independent directors, contained lofty performance milestones, and was blessed by a shareholder vote that was not even required.
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