US judge throws out Musk’s controversial pay package

Judge Kathleen McCormick’s ruling follows her ruling in January, which described… Pay for the package It was deemed excessive and canceled, surprising investors and casting doubt on Musk’s future at most companies Automotive industry Value in the world.

Musk has not yet responded to an emailed request for comment from Reuters.

she said Tesla In court documents, a judge must uphold a subsequent vote by company shareholders in June in favor of the pay package Maskthe driving force behind the company and the creditor of many of its achievements, acknowledges its eligibility for this package.

As for McCormick She said yesterday, Monday, that Tesla’s board of directors had no right to “re-adjust” the situation to restore Musk’s pay package.

“If the Court allows losing parties to create new facts for the purpose of reviewing the judgments, the litigation will become interminable,” she added in her 101-page opinion.

It also said that Tesla made several fundamental errors in the vote and cannot claim that the vote was a “blanket solution” to justify restoring Musk’s salary.

And it fell Tesla shares 1.4 percent in after-hours trading, after the ruling.

* ‘Unimaginable amount’

McCormick also ordered Tesla to pay $345 million to the lawyers who brought the case, far less than the $6 billion they originally sought. The compensation can be paid in cash or through Tesla stock, she said.

Musk and Tesla can appeal to the Delaware Supreme Court when McCormick issues a final order, which could come this week. Application of the appeal may take up to a year.

In January, McCormick revealed that Musk had control over the board’s 2018 decision on this generous pay package. The board said at the time that Musk deserved the package because he had achieved all the ambitious goals in terms of market value, revenue and profitability.

In his ruling in January, the judge described the pay package as “the biggest pay plan ever – an unimaginable amount”.

It was 33 times larger than the next highest CEO pay package, which was for Musk himself in 2012.