Elon Musk’s record-setting Tesla Inc. pay package was again rejected by a Delaware judge even after shareholders supported reinstating it.
Despite the June 13 shareholder vote at the company’s annual meeting, Delaware Chancery Court Judge Kathaleen St. J. McCormick decided to stick with her original finding in January that the company’s board was too much under the influence of the billionaire entrepreneur when it adopted the plan in 2018.
The stock options package was initially worth $2.6 billion and spiked to $56 billion by the time the judge canceled it. The package was worth $101.5 billion at Monday’s closing price.
McCormick’s ruling striking down the highest-ever pay arrangement for a US corporate executive could take a giant bite out of Musk’s wealth and put the fate of his companies in question if it stands up on appeal. Even without the payout, he remains the world’s richest person.
The ruling comes just after Musk’s wealth hit an all-time high — surpassing the previous record of $340.4 billion set in November 2021 — thanks to a Tesla stock rally following the presidential election and a new funding round for his artificial intelligence startup.
Musk’s numerous businesses have been surging in value since Donald Trump’s election victory propelled Musk, his so-called “first buddy,” into the political spotlight.
Tesla and its board, which includes Musk, didn’t immediately respond to a request for comment.