On November 13, 2024, Musk listened to US President-elect Trump’s speech at the House Republican Conference at the Hyatt Regency Hotel on Capitol Hill in Washington, DC.
Alison Robert | Getty Images
Tesla CEO Musk A Delaware judge on Monday failed to reinstate its 2018 executive pay package, upholding her previous ruling that the pay plan was improperly awarded.
The plan, worth approximately $56 billion, is the largest executive compensation package for public companies in U.S. history.
After the trial, Musk’s lawyers tried to persuade a Delaware Business Court judge to overturn her decision to revoke the CEO’s compensation plan. In June, Tesla “approved” Musk’s 2018 compensation plan in a shareholder vote at the electric car maker’s annual shareholder meeting in Austin, Texas.
“Even if a shareholder vote could have the effect of ratification, it cannot do so here,” Judge Katherine McCormick wrote in her opinion Monday. Judge approves successful lawsuit on behalf of Tesla shareholders to invalidate compensation plan lawyers paid US$345 million in legal fees.
Bernstein, Litowitz, Berger & Grossmann, the firm representing the plaintiffs, said in a statement.
Musk can appeal the decision to the Delaware Supreme Court.
After McCormick decided to repeal the program in January, Musk lashed out at the court, posting on X, “Never register your company in Delaware.” The company then held a shareholder vote, It was decided to re-register in Texas and officially moved the company’s registered place to Texas in June.
In response to Musk’s motion that Tesla’s vote to approve his compensation plan should have caused her to overturn her previous opinion, Judge McCormick wrote: “If the court indulges in allowing a losing party to create new facts in order to modify a judgment, practices, litigation will become endless.
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