Tesla's Board Compensation Plan Revoked Musk Will Face Huge Compensation
Tesla CEO Musk's compensation package was quashed by a Delaware judge because of problems with the parties' relationships in developing the package。
Tesla (ticker: TSLA) CEO Musk's compensation package was struck down by a Delaware judge, a ruling that put the company in the spotlight。The judge noted that Tesla's board had failed to demonstrate the fairness of the compensation package and said there were problems with Musk's relationship with the company in developing the package.。This compensation package once made Musk one of the richest people on the planet, but now may need to refund the corresponding compensation。
Tesla's shares fell about 3 percent in after-hours trading after the ruling was announced.。The court asked to negotiate a final order directing Musk to refund the compensation he received under the plan.。Musk is likely to appeal to the Delaware Supreme Court.。
Musk responded to the ruling by saying, "Never register your company in Delaware."。He also plans to increase voting control of Tesla, which he currently holds about 13 percent of directly.。
The outcome of this lawsuit will have a profound impact on Tesla's future, especially given Musk's dominance of the company and his lofty ambitions for AI and robotics.。He said not having enough voting control would affect Tesla's ability to become a leader in AI and robotics.。
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