Wilmington, DE, Dec 3 (UNI) - A Delaware judge has reaffirmed her decision to invalidate Elon Musk's $56 billion compensation package from Tesla, despite a shareholder vote supporting it earlier this year.
Chancellor Kathaleen McCormick of the Delaware Court of Chancery ruled that the board was unduly influenced by Musk during the approval process. This ruling follows her January decision, which deemed the pay package excessive and unfair to shareholders.
In her latest ruling, McCormick found flaws in the shareholder ratification attempt, stating that it could not override her earlier judgment. "Even if a stockholder vote could have a ratifying effect, it could not do so here," she wrote.
Musk responded on social media, asserting that shareholders should control company votes, not judges. Tesla plans to appeal the ruling, claiming it undermines shareholder rights.
Additionally, the court awarded $345 million in attorney fees to the plaintiff's lawyers, significantly less than the $5.6 billion they initially sought. The ruling raises questions about the future of Musk's compensation and the governance practices at Tesla.