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Judge aims to rule on Elon Musk’s  billion Tesla salary by the end of the year
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Judge aims to rule on Elon Musk’s $56 billion Tesla salary by the end of the year

“I am writing to inform you that I aim to make this decision before the end of this year,” said the letter from Kathaleen McCormick, Chancellor of the Delaware Court of Chancery.

Reuters

03 November 2024, 12:25

Last modified: 03 November 2024, 12:28

Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, watches the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton on May 6, 2024 in Beverly Hills, California, USA. Photo:REUTERS/David Swanson//File Photo

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Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, watches the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton on May 6, 2024 in Beverly Hills, California, USA. Photo:REUTERS/David Swanson//File Photo

Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, watches the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton on May 6, 2024 in Beverly Hills, California, USA. Photo:REUTERS/David Swanson//File Photo

A Delaware judge considering whether a vote by Tesla shareholders will reinstate Elon Musk’s $56 billion pay package invalidated by the court will try to make a decision this year, according to the judge’s letter to lawyers in the case.

“I am writing to inform you that I aim to make this decision before the end of this year,” said the letter from Kathaleen McCormick, Chancellor of the Delaware Court of Chancery.

Musk’s 2018 stock options pay package is the largest ever in corporate America. McCormick ruled in January that the “incomprehensible” compensation was unfair to Tesla shareholders, finding that it was negotiated by executives who appeared to be loyal to Musk.

McCormick considers two decisions that will have a multibillion-dollar impact on Tesla and its investors.

One of them is Tesla’s request to pay $1 billion in legal fees in cash or stock to lawyers representing the shareholder who sued Musk over his salary.

The other is to decide whether to bring back the pay package with a vote by Tesla shareholders in June, after McCormick annulled it in a court decision in January.