Elon Musk isn’t going to get that $55 billion pay package after all, a Delaware Chancery Court judge has ruled.
Tesla shareholders approved the package in 2018, which gave Musk incentive to hit specific milestones, including a market valuation of $650 billion, which was more than 10 times the valuation at the time. The trial hinged on a specific question: did Musk mislead the shareholders when he gave them the plan?
Greg Varallo, attorney for the investor who sued, Richard Tornetta, said the investors weren’t told that Musk himself came up with the plan, or that the board’s members were beholden to Musk. Last February, Judge Kathaleen McCormick called this argument a “kill shot.”
“Defendants were unable to prove that the stockholder vote…