Bloomberg Law
Judge Voids Musk's Multibillion Dollar Pay Package Again
Dec 4, 2024
Eric Talley, a business law expert from Columbia Law School, discusses a Delaware judge's decision to void Elon Musk's multibillion-dollar Tesla pay package. He delves into the complexities of shareholder votes and corporate jurisdiction impacts. David Voreacos, a Bloomberg legal reporter, sheds light on the ongoing legal troubles of Gautam Adani, including accusations of bribery and the intricate extradition hurdles between the U.S. and India. The conversation highlights both the implications for Musk's wealth and the broader landscape of corporate law.
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Quick takeaways
- A Delaware judge reaffirmed that Elon Musk's multibillion-dollar pay package was voided due to improper influence and breached fiduciary duties.
- Despite the ruling, Musk remains the wealthiest person globally, highlighting the limited personal financial impact of the legal decision.
Deep dives
Elon Musk's Voided Pay Package
A Delaware Chancery Court judge has voided Elon Musk's multibillion-dollar pay package from 2018 twice, determining that the Tesla board was improperly influenced by Musk himself when agreeing to the terms. Initially voided in January 2024, the package was worth $56 billion, which ballooned to $101.5 billion by the time of the second voiding. The judge ruled that Musk breached fiduciary duties and the approval by shareholders did not remedy these violations. Despite the decision, Musk remains the wealthiest person in the world, indicating the ruling's limited impact on his overall wealth.
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