Judge Allows Elon Musk to Appeal Tesla’s $56 Billion Pay Package Ruling

A Delaware judge has granted Elon Musk and Tesla the opportunity to appeal a decision that invalidated the $56 billion pay package awarded to Musk in 2018. The ruling, issued by Chancellor Kathaleen McCormick of the Court of Chancery, opens a 30-day window for Musk and Tesla to bring the case to the Delaware Supreme Court.

Background on the Pay Package Dispute

In January, McCormick ruled that Musk and Tesla’s board had breached their fiduciary duty to investors when they approved the record-breaking compensation plan. She described the package as “unfathomable” in scale and rejected a shareholder vote in June that supported the compensation deal.

McCormick also ordered Tesla to pay $345 million in legal fees to the attorneys of Richard Tornetta, the shareholder who filed the lawsuit in 2018 to rescind the package.

Next Steps and Timeline

With the appeal now permitted, Tesla and Musk aim to challenge McCormick’s findings. However, the Delaware Supreme Court may take up to a year to deliver its ruling.