Home News US Court orders reversal of Elon Musk's $56 billion Tesla compensation package

US Court orders reversal of Elon Musk's $56 billion Tesla compensation package

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Delaware: The Washington Post reported on Tuesday that a Delaware court ruled that Elon Musk’s generous 2018 compensation package – which was instrumental in elevating Musk to the title as the richest person in the world – was unfair and must be reversed.

Musk was granted stock options as part of the USD 56 Billion package, which was approved by Tesla’s board and shareholders. These options are based on Tesla meeting certain performance targets.

Shareholders sued Musk for alleged improprieties that occurred in the approval process. The Washington Post reported that this decision, first announced by Chancery Daily, has caused significant debate in Delaware Chancery Court.

Musk, the man who purchased the social networking site X – formerly Twitter – for USD44 billion, has responded to the decision strongly. Musk said that if you want to start a company, never incorporate it in Delaware.

Kathaleen McCormick in her opinion declared judgment in favour of Richard Tornetta. She stated that he had the right to “recission”, indicating the package was undone.

The judge…



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