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US Judge Rejects Elon Musk’s $55.8 Billion Tesla Compensation Plan Yet Again

Elon Musk’s $55.8 Billion Tesla Pay Package Rejected by US Court Once More

A Delaware court has ruled against Elon Musk’s $55 billion compensation package from Tesla. The decision stems from a lawsuit filed by Tesla shareholders who argued that the deal, which was potentially worth over $55 billion, was the result of Musk’s influence over the company and lacked proper negotiations.

The court determined that because Musk held significant control over Tesla, the compensation package should have been subject to stricter review.

The case highlighted concerns that Tesla’s board and compensation committee were not independent in approving the deal, and that shareholders were not properly informed.

Musk, who has already benefited substantially from the plan through stock options, disagreed with the ruling, suggesting that it resulted from the court’s laws rather than fair business practices.

This decision is seen as a significant legal blow, especially given the size and potential impact of Musk’s pay package on Tesla’s financials.

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