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Delaware court to Elon Musk: you still can’t have $56 bln pay
STORY: Elon Musk still can’t have his $56 billion pay package. That was the ruling from a Delaware judge on Monday. The case involves the largest-ever compensation package at a U.S. public company.It also comes after Musk has become a close adviser of President-elect Donald Trump, and has been tasked to help slash U.S. government bureaucracy.The same judge, Chancellor Kathaleen McCormick, in January deemed the $56 billion pay package from Tesla excessive and rescinded it.Then in June, Tesla shareholders voted in favor of reinstating Musk’s compensation.The automaker has said in court filings that McCormick should recognize the vote.But her 101-page opinion Monday said a ratification vote like the one Tesla used in June had to be conducted before the trial.And that Tesla’s board was not entitled to hit “reset” to restore Musk’s pay package.Many small-time investors and Musk fans promptly criticized the decision on social media. While Tesla said it would appeal. McCormick also blocked lawyers who brought the case from getting the $6 billion in fees they had demanded. Instead, she ordered Tesla to pay the attorneys $345 million – still one of the largest-ever awards in securities litigation. The sum of Musk’s pay package has actually risen in line with Tesla shares – which have surged since Trump’s election to office.His compensation is now worth about $101 billion.
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