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Elon Musk’s massive, multi-billion-dollar Tesla pay package was blocked by a judge again

Tesla CEO Elon Musk. Allison Robbert/Pool/Reuters/File

Tesla CEO Elon Musk. Allison Robbert/Pool/Reuters/File

CNN — Elon Musk’s record-breaking pay package for serving as Tesla’s CEO was rejected on Monday by a Delaware court, despite being approved by Tesla shareholders at a June meeting.

The pay package, now worth $56 billion, is made up of 303 million Tesla stock options. It had been previously thrown out by the same judge, Delaware Chancery Court Chancellor Kathaleen McCormick, in January.

At the time, McCormick ruled that Musk and the Tesla board “bore the burden of proving that the compensation plan was fair, and they failed to meet their burden.”

 
 

Musk’s attorneys attempted to reverse McCormick’s January decision after the 2018 pay package was re-approved by 84% of shares not held by Musk or his brother, Kimbal Musk, in June.

But on Monday, that motion was denied.

“Even if a stockholder vote could have a ratifying effect, it could not do so here,” McCormick wrote in her Monday opinion.

This is a developing story. It will be updated.

Author: Samantha Delouya

Source: CNN:::

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