Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO's pay deal by the company's shareholders, a Delaware judge ruled on Monday.
Tesla told employees on its Cybertruck production line that they didn't need to report to work for the next three days. Regular scheduling will resume on Friday, the company told staff.
Shares of Tesla slipped in after-hours trading Monday following the news that a Delaware judge for a second time moved to strike down a multibillion-dollar pay package for CEO Elon Musk.
McCormick also ordered Tesla to pay the attorneys who brought the case $345 million, well short of the $6 billion they initially requested.
A judge in Delaware struck down a record-breaking pay package for billionaire Elon Musk for a second time—despite the $50 billion in stock options being approved by Tesla shareholders in June—upholding her previous judgment that the company's shareholders were too under the influence of Musk to approve the package.
A Delaware judge again rejected Tesla's huge 2018 pay deal for CEO Elon Musk. Tesla stock fell modestly late after setting a two-year closing high.
A Delaware judge has once again struck down a compensation plan for Tesla Inc TSLA CEO Elon Musk from 2018, news that comes six months after Tesla shareholders approved the pay package for a second time.
Stifel has increased its price target for Tesla (TSLA) from $287 to $411 while maintaining a Buy rating. Stifel NextGen Transport Analyst Stephen Gengaro joined Market Domination to explain the rationale behind this significant boost.
Kathaleen McCormick in Delaware rules Musk not entitled to vast sum despite Tesla shareholders voting to reinstate it
A Delaware judge decided against reinstating Elon Musk's $56 billion pay package. Tesla shareholders approved Musk's pay package in June, after a judge voided it in January.
The judge said she would not reverse her decision to strike down the compensation package after Tesla shareholders approved Mr. Musk's pay a second time.
Delaware Chancery court judge Kathaleen McCormick has denied Tesla's request to revise her decision to strike down CEO Elon Musk's $56 billion pay package — despite shareholders voting at the company's annual meeting this year to “re-ratify” the deal.