Elon Musk sees $56bn Tesla pay deal cancelled in court - BBC News

The court found the process of deciding Elon Musk's huge 2018 pay award was "deeply flawed".

2 hours agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesBy Mariko Oi & Michael RaceBusiness reporters, BBC NewsA judge in the US state of Delaware has annulled a $55.8bn (£44bn) pay deal awarded to Elon Musk in 2018 by the electric car company Tesla.

The lawsuit was filed by a shareholder who argued that it was an overpayment.

Judge Kathaleen McCormick found Tesla directors, who negotiated the pay package, were "perhaps starry eyed" due to Mr Musk's "superstar appeal" and did not fully inform shareholders.

She said the deal was "unfathomable" and ruled it should be cancelled.

The pay deal was the biggest ever in US corporate history, helping to make Mr Musk the richest person in the world. Bloomberg and Forbes estimated his net worth to be between $198bn (£162bn) and $220bn (£180bn), in November 2023.

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