U.S. Court Blocks Massive Payment to Elon Musk from Tesla

On Monday, a judge once again rejected Tesla's plan to pay CEO Elon Musk 56 billion euros, despite shareholder approval. What will Tesla and Musk do next?

Elon Musk’s Compensation Plan Rejected

A Delaware judge in the United States has again rejected the €56 billion compensation package that Tesla awarded its CEO, Elon Musk, despite it being approved by a majority of the company’s shareholders.

Controversial Plan

Judge Kathaleen McCormick had previously dismissed the plan in January, criticizing its approval by a committee composed solely of Musk’s close friends.

Responding to the decision, the billionaire stated, “Shareholders should control company votes, not judges” and mentioned he would join Donald Trump’s administration in 2025.

Tesla’s Response

Tesla condemned the verdict and announced plans to appeal. Despite the judge’s initial cancellation, the board reintroduced the plan at the general assembly, where it was approved by 72% of shareholders, replicating the approval rate of the 2018 AGM.

Legal Proceedings

The judge also awarded $345 million in damages to Gregory Varallo, the lawyer of the shareholder opposing the compensation plan, to be paid by Tesla. Musk’s lawyers have yet to respond to AFP’s requests for comment.

In conclusion, the outcome of this case remains uncertain and could significantly affect the compensation structure for corporate executives in the United States.