A judge in the U.S. State of Delaware voided the $56 billion compensation package of Tesla Chief Executive, Elon Musk, on Tuesday, siding with a shareholder who claimed the entrepreneur was overpaid.
The judge, in Delaware Chancery Court ruled that the plaintiff, a Tesla shareholder named Richard Tornetta, was “entitled to rescission,” approving the annulment of Musk’s 2018 humongous compensation agreement worth as much as $55.8 billion.
Judge Kathaleen McCormick added that the parties must now “confer” and then submit a joint letter “identifying all issues, including fees that need to be addressed to bring this matter to a conclusion at the trial level.”
The electric vehicle maker’s share price fell more than three per cent in after-hours trading following the publication of the 200-page ruling.
In a message posted to X, formerly Twitter, shortly after the decision was announced, Musk the world’s richest person wrote: “Never incorporate your company in the state of Delaware.”
A lawyer for Musk did not immediately respond to a request for comment.
