A Delaware judge ruled Monday that Tesla CEO Elon Musk still is not entitled to receive a $56 billion compensation package despite shareholders of the electric vehicle company voting to reinstate it.
The ruling by the judge, Chancellor Kathaleen McCormick of the Court of Chancery, follows her January decision that called the pay package excessive and rescinded it, surprising investors, and cast uncertainty over Musk's future at the world's most valuable carmaker.
Tesla's board was hoping shareholder approval will give the electric vehicle maker the legal ammunition it needs to reinstate the package, though that is far from certain.
The company has also said if the compensation plan is rejected by shareholders, it expects Mr Musk would only accept a pay package that is similar in size to the voided one.
Chancellor Kathaleen McCormick of the Delaware Court of Chancery upheld her January decision, which deemed the pay package excessive and rescinded it, raising uncertainty about Musk’s future at Tesla.
Tesla issued a statement on Musk's X site (formerly Twitter), calling the ruling “wrong” and announced plans to appeal.
Musk also criticized the decision, stating shareholders, not judges, should control company votes. Following the ruling, Tesla’s stock dropped 1.4% in after-hours trading.
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