The Delaware State Court in the United States has again opposed Tesla’s $56 billion payout to Elon Musk, the company’s chief executive officer. This decision was made despite the vote of investors who approved the payment, Reuters reports.
This decision follows the verdict of Judge Kathleen McCormick of the Chancery Court, who in January 2024 canceled the payment to Elon Musk. At that time, she noted that this compensation was unfair to Tesla shareholders, and the board of directors was overly influenced by the “rhetoric” around Musk.
Elon Musk wrote on his X account that voting within the company should be managed by shareholders, not judges. Tesla’s official account also posted a post in which the company stated that the judge’s decision was wrong and that the company would appeal.
Musk and Tesla will be able to appeal the decision to the Delaware Supreme Court as soon as Judge McCormick issues a final verdict, which could happen as early as this week. However, even in the event of a quick decision, the appeal could take a year to resolve, further delaying the payment to Musk approved in 2018.
In addition, following Donald Trump’s victory in the US election, Tesla shares have risen 42% since November 5. As a result, the payout to Elon Musk, which was originally supposed to be $56 billion, has also increased to $101 billion.
It’s also worth noting that many of the company’s investors have previously gone to court to demand that Elon Musk’s compensation be approved, claiming that he has achieved his goals and led the company to success. Investors expressed fears that Musk might leave Tesla if he was not compensated.
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