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Benzinga
  • 2 years ago
A Delaware judge canceled Elon Musk's $56 billion pay package from Tesla, ruling the deal was an "overpayment". Judge Kathleen McCormick ruled that the main reason for the large pay package was not to incentivize Musk, but rather Tesla directors were influenced by Musk's charisma. The judge said Tesla directors who negotiated the package were too influenced by Musk's "star power" and did not properly inform shareholders. She noted Musk's close ties to several Tesla board members involved in approving the compensation.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 Delaware judge cancelled Elon Musk's $56 billion pay package from Tesla,
00:07 ruling the deal was an overpayment.
00:09 Judge Kathleen McCormick ruled that the main reasons for the large pay package was not to
00:14 incentivize Musk, but rather Tesla directors were influenced by Musk's charisma.
00:19 The judge said Tesla directors who negotiated the package were too influenced by Musk's star power
00:24 and did not properly inform shareholders.
00:27 She noted Musk's close ties to several Tesla board members involved in approving the compensation.
00:32 The cancellation is a major blow to Musk's net worth,
00:35 currently estimated at $198 to $220 billion.
00:38 Tesla shares fell around 2.5% in extended trading following the announcement.
00:42 For all things money, visit Benzinga.com
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