Tesla CEO Elon Musk's Compensation In Limbo After Judge Voids $55-Billion Plan: 'Never Incorporate Your Company In Delaware' (UPDATED)
Portfolio Pulse from Chris Katje
A Delaware judge voided Elon Musk's $55-billion compensation plan, which was challenged by a Tesla shareholder for lack of proper investor disclosures. Tesla's board must now propose a new compensation plan for Musk. This ruling could affect Musk's status as the world's richest person, potentially dropping his net worth and ranking. Tesla shares fell 2% in after-hours trading.
January 30, 2024 | 10:19 pm
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Tesla Inc faces a legal setback as a judge voids Musk's $55B compensation plan, requiring a new plan to be drafted. The ruling may affect Musk's net worth and Tesla's market perception, with shares dropping 2% after-hours.
The voiding of Musk's compensation plan is a significant legal and corporate governance event for Tesla, likely leading to uncertainty about future executive compensation and potential changes in leadership dynamics. The immediate negative reaction in after-hours trading indicates a short-term bearish outlook for TSLA stock.
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