From Nasdaq:

A challenge to $55-billion pay for Tesla CEO Elon Musk succeeded as a Delaware judge voided the package. Musk’s 2018 compensation plan was 250 times larger than a peer’s and over 33 times larger than the next closest comparison. The decision could put Musk’s title as the world’s richest person in jeopardy.

Chancery Court Chief Judge Kathaleen McCormick found that Tesla’s board, which approved the compensation plan, was controlled by Musk and was not truly independent. Musk expressed his frustration after the ruling, saying, “Never incorporate your company in the state of Delaware.”

If the decision stands, Musk’s options that were part of his compensation package will be valued at over $50 billion. Without the options, Musk would see his net worth fall to $154.3 billion, ranking him third for the world’s richest person. Tesla shares are down 2% in after-hours trading Tuesday.



Read more: Tesla CEO Elon Musk’s Compensation In Limbo After Judge Voids $55-Billion Plan: ‘Never Incorporate Your Company In Delaware’ (UPDATED)