Musk loses $55 billion package

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Elon Musk's $55 billion pay package at Tesla Inc. was voided by a Delaware judge on January 30, 2024, after a shareholder challenged it as excessive. The decision could significantly impact Musk's wealth if it survives a likely appeal. The ruling means that Tesla's board will have to start over and come up with a new proposal, leaving the future of Musk's fortune in limbo124. The shareholder lawsuit, initiated by Richard Tornetta, accused Musk and Tesla's board of directors of wasting corporate assets and unjustly enriching the billionaire. The judge agreed that conflicts of interest made the board's consideration of Musk's pay package flawed. The judge also noted that Musk's defense failed to explain why the "historically unprecedented compensation plan" was necessary, especially given that Musk had no intention of leaving Tesla and his ownership stake was sufficient motivation to keep him focused on growth27. The decision could potentially affect Musk's position as the world's richest person. Without the options from the pay package, his net worth would drop to $154.3 billion, making him the third-richest person in the world, according to the Bloomberg Billionaires Index2. As of January 2, 2024, Musk's net worth was estimated at $229 billion14. However, it's important to note that these figures could change depending on the outcome of the likely appeal against the judge's decision. The ruling comes five years after the pay package was initially approved. At the time, it was the largest potential pay package ever in history. The compensation plan tied certain stock option tranches for Musk to Tesla's market capitalization13. The ruling means that Tesla must now draft a new compensation package for Musk13.
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Elon Musk can't keep $55 billion Tesla pay package, Delaware judge ...
Elon Musk $55 Billion Tesla Pay Package Voided by Judge
Elon Musk cannot keep Tesla compensation package worth more than ...
Elon Musk cannot keep Tesla compensation package worth more than ...
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