Lukasz Glowala/Reuters
Elon Musk’s record $56 billion Tesla pay package was blocked by a Delaware judge Tuesday who ruled that the “unfathomable sum” was unfair to the company’s shareholders.
The ruling came in a lawsuit brought by a shareholder in 2018 accusing the Tesla CEO of dictating the package in sham negotiations with directors who weren’t independent of him. “Never incorporate your company in the state of Delaware,” Musk posted on X in the wake of the ruling.
The decision—which can be appealed—kills off one of the largest pay deals in corporate history that had helped to make him the richest man on earth. During a week-long trial, Tesla directors said the package was designed to make sure Musk’s focus remained on the electric auto manufacturer.