Business Desk 
Dec 03, 2024
Nearly a year after downplaying the multibillionaire's multibillion-dollar Tesla compensation package, a Delaware on Monday once again rejected the Tesla boss' $56 billion pay package.
Claiming that the tech tycoon is not entitled to a $56bn Tesla compensation package, the ruling of the judge, chancellor Kathaleen McCormick of the Court of Chancery in the US, came despite shareholders of the electric vehicle (EV) manufacturer voting in its favour in June earlier this year.
Elon Musk Tesla package rejected
The US judge in his remarks in January declared the pay package excessive while revoking it, leaving investors in shock and casting a shadow of gloom over Musk's Musk's future at the world's most valuable carmaker.
"Shareholders should control company votes, not judges," stated Musk in a post on X following the decision. The company's opinion regarding the Delaware judge ruling aligned with that of Musk, stating that "the ruling is wrong, and we're going to appeal."
The judge discarded a supermajority of shareholders, Reuters cited a statement released by Tesla.
The bright side of the development is that both Musk and Tesla have the margin to legally challenge the decision by appealing to the Delaware Supreme Court, as the judge closed in on a final order slated to be given as soon as this week.
Favouring the release of the pay package for Musk, the company said in court filings that voting conducted by its shareholders in June is considerable.
With Musk being at the helm of Tesla, leading various aspects of the firm to progression towards advancement, Tesla said the court should restore his compensation package.
