A Delaware judge ruled Monday that a Tesla shareholder vote endorsing a $56 billion pay package for Elon Musk does not change her original ruling invalidating the compensation plan.
Why it matters: Chancellor Kathaleen McCormick dismissed the compensation deal in January, saying Musk had failed to prove it was fair and properly disclosed to shareholders when it was first announced in 2018.
Driving the news: McCormick on Monday rejected Tesla’s request to authorize the package after the company’s shareholders formally endorsed it in a non-binding vote in June.
- She said Musk’s attorneys made an argument with multiple “fatal flaws,” including their argument that the shareholder vote was enough to validate the pay package after the fact.
- “The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law,” McCormick said in her ruling.
The other side: Musk did not respond to a request seeking comment, but he has repeatedly ripped Delaware since the original ruling.
- “Companies should get the hell out of Delaware,” he said on his platform X in August.
Zoom in: The judge also ordered Tesla to pay $345 million in fees and fund reimbursement to shareholder attorneys.