Tesla CEO Elon Musk denied $56bn pay package once again by Delaware judge

Tesla CEO Elon Musk was once again denied the $56 billion pay package by Delaware Chancellor Kathaleen McCormick, who previously ruled the sum should not be paid to Musk.

Tesla shareholders voted after the initial rejection of the massive pay package that was awarded to Musk for achieving several tranches related to company growth to award the CEO with the money.

McCormick once again denied the pay package. This comes 11 months after the first rejection, which occurred in January.

Tesla CEO Elon Musk’s $56bn pay package decision to come before end of year

The pay package was challenged by shareholder Richard J. Tornetta, who owned only a handful of Tesla shares. McCormick ruled in January that Musk’s “unfathomable sum” was unfair to shareholders.

However, it appears the weight of one shareholder and one chancellor outweighs that of a majority of Tesla shareholders who voted overwhelmingly this past Summer to award Musk the money once again.

However, on Monday, Chancellor McCormick once again said Musk should not be awarded the sum.

Tesla responded:

“A Delaware judge just overruled a supermajority of shareholders who own Tesla and who voted twice to pay @elonmusk what he’s worth. This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware.”

Perhaps what is most baffling about the ruling by McCormick is the fact that Tesla will be forced to pay $345 million in fees to lawyers who represented Tornetta and other shareholders. The lawyers, at one time, requested more than $5.5 billion from the case, and they wanted it in the form of Tesla stock.

Those lawyers said in a statement (via The New York Times):

“We hope that the chancellor’s well-reasoned decision will end this matter for the shareholders of Tesla.”

They also said that they are looking forward to defending the judgment if Tesla decides to appeal. The company said it will be appealing McCormick’s decision.

Vivek Ramaswamy calls Elon Musk’s Tesla pay package situation ‘a threat to capitalism’

It also seems Chancellor McCormick did not believe the shareholder vote and subsequent board vote were not a reasonable way to reinstate the pay package.

She said:

“Were the court to condone the practice of allowing defeated parties to create new facts for the purpose of revising judgments, lawsuits would become interminable.”

Need accessories for your Tesla? Check out the Teslarati Marketplace:

Please email me with questions and comments at joey@teslarati.com. I’d love to chat! You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla CEO Elon Musk denied $56bn pay package once again by Delaware judge






Visited 1 times, 1 visit(s) today

Related Article

The lawyers who took on Tesla and Elon Musk wanted $5.6 billion for winning the case. In a lawsuit about excessive pay, ‘That was a bold ask,’ said the judge. 

A Delaware court judge this week denied Tesla CEO Elon Musk’s bid to reinstate his pay package, now valued at $100 billion.  But there was another denial issued: The lawyers who successfully argued that Musk’s pay was illegal and should be rescinded wanted $5.6 billion for their efforts. The judge didn’t quite bite.   However, they

10 Celebrities That Should Be on ‘House of Villains’

Now two seasons in, House of Villains has been the guilty pleasure smash hit reality fans have been waiting for. The series watches as some of the greatest villains in the genre compete to earn the moniker of America’s Greatest Supervillain and $200,000. Competing for power, safety, and the ability to nominate their rivals for

Bill Maher Might Quit ‘Real Time’ Because Donald Trump Jokes

New rule: if Donald Trump is getting back his old job, then it might not be worth staying at your current job. That’s the premise that Bill Maher floated on his “Club Random” podcast speaking with Jane Fonda in an episode released Sunday. While interviewing the actor and activist, Maher expressed exhaustion at the prospect

Half of US Adults Disapprove of Joe Biden Pardoning Hunter: Poll

Fifty percent of U.S. adults do not approve of President Joe Biden pardoning his son Hunter, according to a new YouGov poll. On Sunday, President Biden announced the pardon saying in part, “Today, I signed a pardon for my son Hunter. From the day I took office, I said I would not interfere with the

Jeff Bezos donates to Coalition for the Homeless in Central Florida

The work to help people experiencing homelessness is complicated and costly – which is why the Coalition for the Homeless was pleased to receive a $5 million grant from a foundation led by Jeff Bezos. “Through this grant which we are honored and thrilled to have received, we’re going to be able to help even

This Is Where Democrats Can Work With Elon Musk’s DOGE To Cut Spending

On “Forbes Newsroom,” Congressman Ro Khanna (D-Calif.) discussed possible areas of agreement for government reform between Democrats and the Department of Government Efficiency (DOGE), spearheaded by Elon Musk and Vivek Ramaswamy. Khanna pointed to the Department of Defense as a place to cut spending and save taxpayer money, an idea supported by Musk and Senator

Celebrities at the 2024 Gotham Awards

Here’s a breakdown of the rest of the notable looks from Monday night’s 2024 Gotham Awards in New York City. Throwing in the towel on expectation Angelina Jolie in a black scarf-like dress has officially lowered my hopes for awards season. It lacked any interest you’d expect from such an iconic star. The design felt

What Happens Next in Elon Musk’s Tesla Pay Battle

A Delaware judge again struck down Elon Musk’s $55 billion pay package. Legal experts walked BI through what the appeal process could look like for Tesla. Tesla may also reintroduce the package in Texas, a strategy that could end up costing shareholders more. Elon Musk’s battle over his Tesla pay is entering a new phase. A

How Rixo’s Vintage-Inspired Dresses Became a Celebrity Style Phenomenon

They say fame changes people. What about dressing famous people? From the outside, it seems Orlagh McCloskey and Henrietta Rix, co-founders of the celebrity-adored, dress-forward label Rixo, aren’t all that different from when they got started in 2015. Sure, they no longer live in the shared apartment where they sketched their first easygoing dresses, inspired

Hallow Teams Up With Celebrities for 2024 Advent Challenge

Published: December 3, 2024 Photo from Jonathan Roumie’s Instagram These Celebrities Want You to Draw Closer to God This Advent By Movieguide® Contributor What do Bear Grylls, Gwen Stefani, Kevin James, Lauren Daigle, Jonathan Roumie and Francis Chan all have in common? You can join them this Advent season on the Hallow prayer app. This year,

Elon Musk and Vivek Ramaswamy agree on ‘need to scrutinize’ US funding for NGOs

Elon Musk and Vivek Ramaswamy — the duo President-elect Donald Trump tapped for the effort known as the Department of Government Efficiency (DOGE) — have indicated that they plan to examine funding for non-governmental organizations (NGOs). “We need to scrutinize U.S. government funding of ‘non-government organizations,’” Ramaswamy noted in a post on X. “It’s an

2024 Election Highlights the Lack of Influence Hollywood Celebrities Have in America

1 Celebrities once leveraged their platforms to shape political opinions and sway elections, but their influence appears to be diminishing as the public grows weary of perceived elitism and performative gestures. High-profile figures such as Oprah Winfrey and Robert De Niro have faced criticism for actions and statements seen as hypocritical or out of touch,

Tesla/Musk We Expect Will Win This Case At The Supreme Court

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. In light of the Delaware Court of Chancery’s unusual step to override Tesla’s shareholder-approved compensation plan for Elon Musk twice in a row, Wall Street analysts are now weighing in on the

Bezos backs RISC-V chipmaker Tenstorrent at $2.6b valuation

Amazon’s founder Jeff Bezos has invested in a chipmaker Tenstorrent – joining Samsung and AFW Partners among others in a monster $693 million Series D round as the company looks to ramp up its RISC-V architecture proposition for AI, in what is a major, arguably contrarian bet. RISC-V is an open standard, allowing anyone to

These celebrities played Mother Ginger in Ballet Austin’s ‘Nutcracker’

To the onstage participants in the scene, it’s the most exciting 60 seconds in “The Nutcracker.” Deep into the second act, out rolls Mother Ginger, a giant matron dressed in red and white. From underneath her voluminous skirts emerge a dozen or so children in candy-colored costumes, who prance expertly around the stage for about

0
Would love your thoughts, please comment.x
()
x