Elon Musk's record salary package at $Tesla Motors(TSLA)$ has been rejected again by a Delaware judge, despite shareholder approval. Judge Kathaleen St. J. McCormick upheld her initial decision from January, ruling that the board was overly influenced by Musk when it adopted the plan in 2018.
The stock option plan, initially valued at $2.6 billion, had soared to $56 billion when canceled and is now worth $101.5 billion based on Monday's closing price.
The ruling could lead to significant losses for Musk, though he remains the world's richest person. Tesla shares fell 1.4% in after-hours trading.
Musk has 30 days to appeal the decision, and Tesla has stated it will challenge the ruling, arguing that it undermines shareholders' rights. McCormick found that Tesla's board, influenced by conflicts of interest, overpaid Musk.
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- Reglloyd·12-09A business is run by and managed by its CEO and board of managers and shareholders, its news to me that a Judge can suddenly overrule its shareholders wishes. The party ain’t over yet.Watch the space.LikeReport