A judge in Delaware has voided Elon Musk’s $55.8 billion pay deal with Tesla, calling it an “unfathomable sum” that was unfair to shareholders.
The 2018 deal, the largest in US corporate history, linked Musk’s compensation to Tesla’s performance.
Shareholder Richard Tornetta filed the lawsuit, claiming Musk was overpaid.
The judge cited flaws in the approval process and Musk’s extensive ties with Tesla officials.
Musk, currently the world’s richest person, can appeal the ruling.
Musk suggested changing Tesla’s state of incorporation to Texas, prompting a poll among his followers.
Tesla shares dipped about 2.5% after the ruling.
