BUSINESS-ECONOMY
A Delaware judge has once again rejected Elon Musk's record-breaking Tesla compensation package of 55.8 billion dollars. This threatens to seize billions of dollars from the wealthiest man in the world and a close associate of Donald Trump. On Monday, judge Kathaleen St. Jude McCormick of the Delaware Chancery Court found that Musk had an inappropriate influence on Tesla's board when the company accepted his proposal in 2018. She had previously deemed the compensation package exorbitant. She had refused to change her mind in January, despite shareholder support for the proposal and Musk's requests that she reconsider. A significant portion of Musk's fortune might be eroded by McCormick's decision to nullify the highest-ever compensation plan for a US business leader. The price of Tesla went up as investors gambled on the billionaire's tight relationship with Trump. But even without the payoff, he is still the wealthiest person in the world. McCormick, also known as Judge Katie, in her 101-page decision that includes references to both Shakespeare and Star Trek noted, "There were undoubtedly a range of healthy amounts that the board could have decided to pay musk. Instead, the board capitulated to Musk's terms." She said she would "boldly go where no man has gone before" to answer the question of whether Musk controls Tesla, quoting the classic 1960s science fiction franchise. McCormick added, "Once more unto the breach, dear friends, once more," invoking Shakespeare's warrior king. A combination of a surge in Tesla stock price after the election and fresh investment in his AI business caused his net worth to soar to an all-time high last month. His latest net worth tops the previous record of 340.4 billion dollars in November 2021. If McCormick's ruling is upheld, the Tesla board would be forced to come up with an alternative pay plan. However, the board announced its intention to file an appeal with the Supreme Court of Delaware soon after Monday's finding. It may take months for that procedure to finish. The highest court in the state is required to consider appeals of judgements made by subordinate courts, unlike the US Supreme Court which gets to decide which cases to hear. (With inputs from the agencies) A journalist, writing for the WION Business desk. Bringing you insightful business news with a touch of creativity and simplicity. Find me on Instagram as Zihvee, tr None
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