January 31, 2024

Hunting Musk

Carlos F Velázquez

The same Delaware judge who ruled against Elon Musk in the Twitter suit forcing him to buy Twitter for $44B has now ruled that Musk's latest compensation pacakage approved by Tesla's board and shareholders is "not fair" and must be rescinded. It's interesting and surprisingly unique that Delawars law stipulates that in certain stockholder suits, the defendants (Musk and Tesla's board in this case), not the suing plaintiffs, have the burden of proof. The judge said that without this compensation, if Musk met his operational targets, he would still be rewarded with billions due to his 22% stake in Tesla, not so subtly saying that Musk should work for free. Afterwards, Musk tweeted on X, "never incorporate in Delaware."

Elon Musk's $55 billion Tesla CEO compensation gets voided by judge

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