Elon Musk’s $56 Billion Tesla Compensation Package Nullified by Judge

A Delaware judge has ruled that the company’s board of directors failed to prove ’the compensation plan was fair.’

X CEO Elon Musk leaves a U.S. Senate bipartisan Artificial Intelligence Insight Forum at the U.S. Capitol in Washington, on Sept. 13, 2023. Mandel Ngan/AFP via Getty Images

A $56 billion pay package granted by Tesla to Elon Musk in 2018 has been nullified by a Delaware judge who ruled that the company’s board of directors failed to prove “the compensation plan was fair.”

Chancery Court Judge Kathaleen McCormick voided the payment package to Mr. Musk on Jan. 30 as part of a lawsuit filed by Richard Tornetta, a shareholder in the electric vehicle maker, five years ago.