Elon Musk will not receive a record salary. There is a verdict

After months of legal battle, a court in Delaware has finally ruled on a record remuneration package for Elon Musk. The payment of the astronomical amount of PLN 56 billion was blocked by a judge, even though it was additionally approved by shareholders and directors of Tesla in the summer.

This is another unfavorable verdict for Musk in this case. Judge Kathaleen McCormick upheld her decision from January, in which she questioned the awarding of the billionaire's remuneration package. According to the judge Elon Musk was to influence the management board's decision to grant him a financial bonus.

In the justification for the judgment, McCormick pointed out that the remuneration package expected for Musk would be the largest in history for the head of a listed company.

Although the prize was originally valued at $56 billion, Tesla shares rose 42%. since November 5, when the Republican candidate Donald Trumpsupported by Musk, won the presidential election in USA. After that the compensation package is worth approximately $101 billion.

It is no surprise that Musk himself did not like this decision. “Shareholders should control voting in companies, not judges,” he wrote on the X platform. Tesla does not give up and announces an appeal.

“If this ruling comes into force, it will mean that judges and plaintiffs' lawyers manage the companies (in the state – ed.) of Delaware, and not their rightful owners – shareholders,” we read in a statement posted by Tesla on X.

Musk and Tesla may appeal to the Delaware Supreme Court as soon as Judge McCormick issues a final order, which could be as soon as this week. It may take a year for an appeal to be processed.

The judge also ruled that the shareholder who brought the case against Tesla and Musk should receive compensation of $345 million. However, his claims were much higher and amounted to the equivalent of USD 5.6 billion in the form of Tesla shares.