Elon Musk Faces Loss of USD 56 Billion Compensation Package in Landmark Delaware Court Ruling

Delaware: A judge has ruled that Elon Musk must relinquish a compensation package granted by Tesla's board of directors, potentially valued at over USD 56 billion. This decision in a Delaware court follows a shareholder lawsuit that took aim at Tesla CEO Musk and the directors, alleging breaches of their duties to the electric vehicle and solar panel manufacturer. The accusations centred around the misuse of corporate assets and unjust enrichment for Musk.

Plaintiff's lawyers argued that the pay package was dictated by Musk and was the product of sham negotiations with directors who were not independent of him.

Defence attorneys said the pay plan was fairly negotiated by a committee of independent directors, contained lofty performance milestones, and was blessed by a shareholder vote that was not even required.