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The ruling by Chancellor Kathaleen St. Jude McCormick comes more than five years after a shareholder lawsuit targeted Tesla CEO Musk and directors of the company. They were accused of breaching their duties to the maker of electric vehicles and solar panels, resulting in a waste of corporate assets and unjust enrichment for Musk.
The ruling swept away the largest pay package in corporate America
The approval process for the compensation package was 'deeply flawed,' Chancellor Kathaleen McCormick wrote, in part because of the CEO's close ties with the people representing the company.
The ruling, if it survives a likely appeal, would take a giant bite out of Musk’s wealth and put the fate of his companies in question.
DOVER, Del. — Elon Musk is not entitled to landmark compensation package awarded by Tesla’s board of directors that is potentially worth more than $55 billion, a Delaware judge ruled Tuesday. The ruling by Chancellor Kathaleen St. Jude McCormick comes more than five years after a shareholder lawsuit targeted Tesla