Elon Musk¡¯s $55 billion pay package at Tesla has been struck down by a Delaware judge after a shareholder challenged it as excessive, in a ruling that would take a giant bite out of Musk¡¯s wealth and put the fate of his companies in question ¡ª if the ruling survives a likely appeal.
The decision Tuesday, which amounts to Musk¡¯s first major loss in court, means that more than five years after the electric carmaker¡¯s co-founder was granted the largest executive compensation plan in history, Tesla¡¯s board will have to start over and come up with a new proposal.
Musk never attempted to exercise his options since they¡¯d been challenged in Delaware Chancery Court. Tesla¡¯s share price slid about 3% in after-hours trading on the news.
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