Elon Musk's $55 billion compensation plan at Tesla was rejected by Chief Justice Katherine McCormick of the Delaware Court of Chancery, a ruling that has significantly shrunk Musk's wealth. Tuesday's ruling means Tesla's board of directors will have to propose a new compensation package, more than five years after Musk received the largest executive compensation package in history. These options, which are about $51.1 billion, are one of Musk's most valuable assets, and without them, his net worth would have dropped to $154.3 billion, making him the third richest man in the world. Katherine McCormick supported the views of a Tesla investor who complained that the 2018 compensation package did not properly disclose the performance benchmarks Musk needed and that the board had a conflict of interest in approving the package. (*AI Telegram for the Financial World).
Musk was clearly very unhappy with the ruling, posting on platform X: "Never register your company in Delaware. ”
Previously, Musk had also expressed dissatisfaction with Delaware's decision not to allow publicly traded companies to establish multiple ownership structures. (*Global Market Broadcast).