Tesla (TSLA) chief executive officer (CEO) Elon Musk has failed to get his $56 billion U.S. pay package reinstated.
A Delaware judge has upheld her previous ruling that struck down the compensation plan, ruling that it was improperly granted to Musk in 2018.
The $56 billion U.S. pay package was the largest compensation ever awarded to the CEO of a publicly traded company.
Musk’s lawyers sought to overturn the judge’s previous verdict that rescinded the payment.
Lawyers for Musk highlighted that Tesla shareholders had voted to “ratify” Musk’s 2018 pay plan at the company’s annual shareholder meeting this summer.
However, Judge Kathaleen McCormick was not swayed by the shareholder vote. In her latest decision, she wrote, “Even if a stockholder vote could have a ratifying effect, it could not do so here.”
Musk is already the wealthiest person in the world with an estimated net worth of $330 billion U.S.
The judge also approved a $345 million U.S. attorney fee for the lawyers who successfully sued on behalf of Tesla stockholders who took legal action to void Musk’s $56 billion U.S. compensation.
After the judge’s earlier decision to void the pay plan, Musk moved to reincorporate Tesla in Texas from Delaware.
Musk can appeal Judge McCormick’s latest decision to the Delaware Supreme Court, if he chooses to do so.
Tesla’s stock has risen 43% so far in 2024 and currently trades at $357.09 U.S. a share.
