8 months ago
16
ARTICLE AD BOX
Image source, Getty Images
By Mariko Oi
Business reporter
A judge in the US state of Delaware has annulled a $56bn (£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 ruled that the Tesla board's approval of the pay package was "deeply flawed."
In a post on X, formerly Twitter which he also owns, Mr Musk wrote, "Never incorporate your company in the state of Delaware".
In her 200-page ruling, Judge McCormick called the compensation "an unfathomable sum" that was not fair to shareholders.
The compensation deal was the biggest ever in corporate history.
The ruling can be appealed to the Delaware Supreme Court.
Shares in Tesla are down more than 3% in extended trade. They have lost more than 20% of their value so far this year.
English (US)