Elon Musk’s $55 billion pay package at Tesla Inc. was voided by a Delaware judge on January 30, 2024, after a shareholder challenged it as excessive. The decision could significantly impact Musk’s wealth if it survives a likely appeal. The ruling means that Tesla’s board will have to start over and come up with a new proposal, leaving the future of Musk’s fortune in limbo.
Judicial decision against Musk and Tesla
The shareholder lawsuit, initiated by Richard Tornetta, accused Musk and Tesla’s board of directors of wasting corporate assets and unjustly enriching the billionaire. The judge agreed that conflicts of interest made the board’s consideration of Musk’s pay package flawed. The judge also noted that Musk’s defense failed to explain why the “historically unprecedented compensation plan” was necessary, especially given that Musk had no intention of leaving Tesla and his ownership stake was sufficient motivation to keep him focused on growth.
Musk’s net worth
The decision could potentially affect Musk’s position as the world’s richest person. Without the options from the pay package, his net worth would drop to $154.3 billion, making him the third-richest person in the world, according to the Bloomberg Billionaires Index. As of January 2, 2024, Musk’s net worth was estimated at $229 billion.
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