Delaware Judge Rejects Elon Musk's $50B Tesla Pay Package Again

Key Points:

• Delaware Court of Chancery Chancellor Kathaleen McCormick rejected Tesla CEO Elon Musk's $50 billion compensation package for the second time
• The case originated in 2018 when Tesla shareholder Richard Tornetta filed a lawsuit challenging the pay package
• The compensation plan included 12 milestones tied to Tesla's growth and market valuation

Main Issues:

• The judge found the process leading to the plan's approval was "deeply flawed"
• Concerns were raised about Musk's control and influence over the company and board
• Even a second shareholder vote in June 2023 (with 72% approval) failed to change the ruling

Outcome:

• The judge awarded Tornetta $345 million in legal fees
• Tesla plans to appeal the decision to the Delaware Supreme Court
• Musk argues that shareholders, not judges, should control company votes