Elon Musk’s $55.8bn pay deal awarded by Tesla in 2018 has been annulled by a judge Delaware,US.
The lawsuit was filed by a shareholder who argued that the pay package was an overpayment.
Judge Kathaleen McCormick ruled that the Tesla board’s approval of the pay package was “deeply flawed” and that Tesla and Mr Musk’s attorneys “were unable to prove that the stockholder vote was fully informed.
The pay deal was the biggest ever in corporate history, helping to make Mr Musk one of the richest people in the world. During the week long trial, Tesla directors argued the deal was made to ensure that one of the world’s most dynamic entrepreneurs continued to dedicate his attention to the company. In a post on X, which is owned by Mr Musk and formerly known as Twitter, hello wrote: “Never incorporate your company in the state of Delaware.