Musk €50bn pay deal axed

Mogul could drop down richest list after judge’s Tesla decision

ELON Musk faces losing his title as the world’s richest person after a court voided his record €50billion pay package from Tesla.

Judge Kathleen Mccormick found the deal given to the chief executive five years ago resulted from him strong-arming the firm’s directors.

The ruling came after a shareholder lawsuit targeted Musk – currently worth an estimated €194bn – and directors involved in negotiations.

They were accused of breaching their duties to the maker of electric vehicles and solar panels, resulting in a waste of corporate assets and unjust enrichment of 52-year-old Musk.

Lawyers argued the compensation package – the biggest in corporate history – should be voided as it was dictated by Musk and the product of sham negotiations with directors who were not independent. They also said it was approved by shareholders given misleading and incomplete disclosures. In trial testimony in 2022, Musk – who also owns Spacex and X, formerly Twitter – denied he dictated the package’s terms or attended meetings at which it was discussed by the board or its compensation committee, or a working group that helped develop it. But Delaware Judge Mccormick said as a controlling shareholder with a potential conflict of interest, the package must be subject to a more rigorous standard. She said in her decision: “The process was deeply flawed.

XASPERATED Elon Musk

Musk had extensive ties with persons negotiating on Tesla’s behalf.”

Musk can appeal but if the ruling is imposed, he will drop below fashion mogul Bernard Arnault and Amazon boss Jeff Bezos on Forbes’ rich list. He said on X: “Never incorporate your company in the state of Delaware.”

An attorney for Musk and other Tesla defendants did not immediately respond to requests for comment.