US court strips Elon Musk of $56 billion in Tesla remuneration

In the United States, a Delaware court has canceled a $56 billion payout to Elon Musk from Tesla. It was the largest compensation deal in the company’s history, writes TechCrunch.

The company’s board of directors decided to pay the compensation in 2018. However, the following year, one of Tesla’s shareholders went to court, demanding that the compensation be canceled.

Now Judge Katherine McCormick has decided to cancel it. According to her, this payment was unfair to Tesla shareholders. The judge also noted that Tesla’s board of directors was “carried away by the rhetoric” around the “superstar” Elon Musk.

Katherine McCormick nevertheless agreed that the defendants had succeeded in proving that “Tesla desperately needed Elon Musk to succeed in its next phase of development”. But she added that “these facts do not justify the largest compensation plan in the history of public markets.”

The billionaire reacted to the judge’s decision with another post on the X platform. Here he advised users not to register their companies in Delaware. Later, he also created a poll on whether Tesla should change its state of registration to Texas.