By the end of the year, the judge hopes to rule on Elon Musk's $56 billion Tesla payout

A Delaware judge is expected to rule this year on whether a recent vote by Tesla (NASDAQ) shareholders reinstated Elon Musk's $56 billion compensation package, which the court had previously annulled. In a letter to the attorneys involved, Chancellor Kathaleen McCormick of the Delaware Court of Chancery stated, "I write to inform you that I aim to issue that decision before the end of this year."

Originally granted in 2018, Musk’s pay package of stock options stands as the largest in U.S. corporate history. In January, McCormick deemed the "unfathomable" compensation unfair to Tesla shareholders, finding that Tesla's board had negotiated the package under conditions suggesting undue loyalty to Musk.

McCormick's upcoming decisions will significantly impact Tesla and its shareholders. One decision will address Tesla's potential obligation to cover up to $1 billion in legal fees—payable in cash or stock—for the attorneys representing the shareholder who challenged Musk's pay. The other will determine if a June shareholder vote restored Musk’s compensation package, which McCormick had previously invalidated.

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.