Tesla has officially appealed the decision against paying CEO Elon Musk the $56 billion pay package that shareholders approved on two separate occasions. Delaware Chancery Court Judge Kathaleen McCormick denied Musk the right to obtain the massive pay twice, with the most recent decision coming in December.
Musk was initially granted the pay package in 2018 by shareholders, who agreed that he could obtain the substantial sum after achieving several lofty growth metrics the company had set for itself.
Last year, McCormick officially denied Musk the opportunity to collect after a small-time shareholder took Tesla to court over the pay package, and won. In an effort to rectify the compensation, Tesla shareholders voted overwhelmingly in support of Musk getting paid.
McCormick decided in December 2024 that she would uphold her ruling.
Tesla CEO Elon Musk denied $56bn pay package once again by Delaware judge
Tesla was given the green light to appeal the decision and ultimately decided today that it would go through with it. Musk still has a chance to overcome the system and obtain the $56 billion he has earned, but it seems far-fetched, unfortunately, that an appeal will result in a different outcome.
OPINION: It is truly unbelievable that a pay package, while massive, that shareholders have approved on more than one occasion is still being revoked.
It sets a precedent that shareholder votes do not truly matter.
Shareholders will act in the best interest of the company and… https://t.co/EgnWdkU8gA
— TESLARATI (@Teslarati) January 8, 2025
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