A Delaware court has ruled that Tesla CEO Elon Musk must surrender a massive compensation package exceeding $55 billion. The decision follows a shareholder lawsuit accusing Musk and Tesla’s board of breaching their duties, alleging corporate asset waste and unjust enrichment for Musk.

Plaintiff’s lawyers contended that Musk influenced the pay package through non-independent directors, framing the negotiations as a charade. Defense attorneys argued that the compensation plan underwent fair negotiation by an independent committee, featured ambitious performance milestones, and received shareholder approval, though not mandatory.

This ruling concludes a five-year legal battle, shedding light on governance issues within the renowned electric vehicle and solar panel manufacturer.

Credit: AP