Tesla (TSLA) CEO Elon Musk has lost his latest legal battle to try and reinstate his $56 billion pay package.
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A Delaware judge has upheld her previous ruling that struck down the compensation plan, ruling that it was improperly granted to Musk back in 2018. The $56 billion pay package was the largest compensation plan in U.S. history for the CEO of a publicly traded company.
Musk’s attorneys sought to overturn the judge’s previous verdict in the case that rescinded the hefty payment. Lawyers for Musk highlighted that Tesla shareholders had voted to “ratify” Musk’s 2018 pay plan at the company’s annual shareholder meeting this past June.
Judge Unimpressed
However, Judge Kathaleen McCormick was not swayed by the shareholder vote. In her latest decision, the judge wrote that, “Even if a stockholder vote could have a ratifying effect, it could not do so here.” The judge also approved a $345 million attorney fee award for the lawyers who successfully sued on behalf of a select number of Tesla shareholders who took legal action to void Musk’s $56 billion pay.
After the judge’s earlier decision to void the pay plan, Musk lashed out at the court on social media, writing, “Never incorporate your company in the state of Delaware.” Tesla has since reincorporated in Texas. Musk can appeal Judge McCormick’s latest decision to the Delaware Supreme Court.
The Tesla CEO is already the wealthiest person in the world with an estimated net worth of $330 billion. TSLA stock has risen 43% so far in 2024.
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 11 Buy, 14 Hold, and nine Sell recommendations made in the last three months. The average TSLA price target of $233.67 implies 34.56% downside risk from current levels.
