Elon Musk’s record Tesla Inc. the pay package was again rejected by a Delaware judge, despite shareholders agreeing to reinstate it.
Despite the June 13 shareholder vote at the company’s annual meeting, Kathaleen St. J. Delaware Chancery Court Judges. McCormick decided to stick with its original findings in January, when the company’s board approved the plan in 2018 that it was too much influenced by the billionaire entrepreneur.
The stock option package was originally worth $2.6 billion and had risen to $56 billion by the time the judge struck it down. The package was worth $101.5 billion at Monday’s closing price.
McCormick’s ruling, which overturns the highest-ever pay arrangement for a US corporate executive, could take a big bite out of Musk’s wealth and leave the fate of his companies in doubt on appeal. Even without the payment, he remains the richest person in the world.
The ruling comes after Musk’s fortunes took a hit all time high – surpassing the previous record of $340.4 billion set in November 2021 – thanks to a rally in Tesla shares after the presidential election and a new round of funding for its artificial intelligence startup.
Many of Musk’s businesses have been increasing in value since Donald Trump’s election victory thrust Musk, his so-called “first friend,” into the political spotlight.
Tesla and its board, including Musk, did not immediately respond to a request for comment.
