A Delaware court judge has ruled that Tesla CEO Elon Musk’s record-breaking £56 billion pay award will not be reinstated, marking a significant development in a prolonged legal dispute.
Judge Kathaleen McCormick announced her decision after months of litigation, maintaining her earlier ruling from January, which stated that board members were unduly influenced by Musk in approving the pay package. This ruling comes despite the pay award receiving backing from both shareholders and directors during the summer.
The decision reflects ongoing scrutiny regarding the governance practices at Tesla and raises questions about executive compensation structures, particularly when large amounts are involved. As the legal proceedings continue to unfold, the implications for Musk and Tesla remain to be seen.