![Judge stops Elon Musk from collecting $55.8 billion from Tesla](https://cdn.buminteractif.com/2024/01/Elon-Musk-GettyImages-1663931480.jpg)
A Delaware judge voided Elon Musk’s record-breaking $56 billion Tesla pay package, calling it ‘an unfathomable sum’ that was unfair to shareholders https://t.co/LN5qfY3Nqs pic.twitter.com/BwbfTzWECn
— Reuters (@Reuters) January 31, 2024
This decision is a blow to Tesla’s CEO, who recently had a disagreement with the Board of Directors over his stake in the company.
McCormick’s detailed 200-page ruling highlighted numerous problems with the compensation process, such as Musk’s power over the board and conflicts of interest.
![](https://cdn.buminteractif.com/2024/01/Tesla-Musk-GettyImages-490597708-1.jpg)
Mr. Musk’s enormous compensation package, the largest in U.S. corporate history, had not been properly negotiated, it seems.
Ms. McCormick also criticized the role of Todd Maron as Tesla’s General Counsel, a former Musk divorce lawyer. She was concerned about the interaction between Mr. Musk and those representing Tesla, as well as the potential for conflict of interest.
![](https://cdn.buminteractif.com/2024/01/2-Elon-Musk-coverimages51484999-1.jpg)
Musk’s agreement was rejected by the judge, whose decision may be appealed to the Delaware Supreme Court. Tesla, Musk and the shareholders are now responsible for implementing the decision.
![](https://cdn.buminteractif.com/2024/01/Tesla-GettyImages-1239417080-1.jpg)