Jan. 31 (UPI) — A judge in Delaware struck down Tesla’s board of directors’ $56 billion compensation package for CEO Elon Musk .
Chancery Court Chancellor Kathleen McCormick on Tuesday agreed with shareholder Richard Tornetta that Musk’s compensation was too much, calling the 2018 year deal “unfair.” She ordered that Musk must give back what he has received thus far.
“In the final analysis, Musk launched a self-driving process, recalibrating the speed and direction along the way as he saw fit,” McCormick said in her ruling, according to CNBC. “The process arrived at an unfair price. And through this litigation, the plaintiff requests a recall.”
Greg Varallo, an attorney for the plaintiffs, praised the ruling .
“We are enormously grateful for the court’s thorough and extraordinarily well-reasoned decision in turning back the Tesla board’s absurdly outsized pay package for Musk,” Varallo said in a statement. “The court’s hard work will redound directly to the benefit of Tesla investors, who will see the dilution from this gargantuan pay package erased.”