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Thursday, April 18, 2024

Judge rules against Elon Musk’s $55 billion Tesla pay package

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NEW YORK — In a groundbreaking decision, a judge has ruled that Elon Musk must relinquish a compensation package awarded by Tesla’s board of directors, potentially worth ‌more than $55 billion.

This ruling comes after⁤ a lengthy legal battle, with a shareholder lawsuit accusing Musk and the directors of breaching their duties to the electric vehicle and solar panel manufacturer. The lawsuit alleged that this breach⁣ resulted in a waste of corporate assets and unjust enrichment for Musk.

Plaintiff’s lawyers argued that ‍the pay⁣ package was unfairly dictated by Musk and was the‍ result‌ of sham negotiations with non-independent directors. On ⁣the other hand, defense ⁤attorneys contended‌ that the‌ pay plan was fairly negotiated by a committee of independent ⁢directors, contained ambitious performance milestones, and ⁢was approved⁤ by a shareholder vote.

This decision has ⁣significant implications for⁣ corporate governance and executive ‍compensation, setting a precedent for the accountability of company‌ leaders and the independence⁣ of board decisions.

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Truth Media Network
Truth Media Network
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