Tesla has lost its bid to reinstate Elon Musk’s record $56 billion pay package after a judge ruled in favor of shareholders who had challenged the controversial compensation plan.
The pay package, which was approved by Tesla’s board in 2018, would have seen Musk receive billions of dollars in stock options if the company met certain performance targets. However, shareholders argued that the plan was excessive and not in the best interests of the company.
In his ruling, Judge Joseph Slights of the Delaware Chancery Court stated that Tesla’s board had not followed the proper procedures when approving the pay package and had failed to adequately consider the potential impact on shareholders. He also criticized Musk for his “extreme” behavior, including tweeting about taking Tesla private at $420 per share, which led to a lawsuit by the Securities and Exchange Commission.
The ruling is a blow to Musk, who is already facing a number of legal challenges, including a defamation lawsuit filed by a British cave diver who Musk called a “pedo guy” on Twitter. Musk has also faced criticism for his handling of the coronavirus pandemic, with some accusing him of downplaying the severity of the virus and spreading misinformation about potential treatments.
Despite these challenges, Musk remains one of the most high-profile and influential figures in the tech industry. He is the founder and CEO of SpaceX, which has successfully launched astronauts into space, and is also working on a number of ambitious projects, including a high-speed transportation system known as the Hyperloop.
While the loss of the $56 billion pay package is a setback for Musk, it is unlikely to have a significant impact on his overall wealth. Musk is currently ranked as the second-richest person in the world, with a net worth estimated at over $200 billion.
In response to the ruling, Tesla said that it would continue to focus on its mission of accelerating the world’s transition to sustainable energy. The company also stated that it remains committed to rewarding its employees and executives in a way that is fair and aligned with the long-term interests of shareholders.
Overall, the ruling represents a victory for shareholders who have been critical of Musk’s compensation and behavior. It also serves as a reminder that even the most powerful and influential individuals are not above the law and must adhere to proper procedures and corporate governance standards.