Delaware judge Kathaleen McCormick upheld her earlier ruling on Monday, denying Elon Musk's attempt to reinstate his record-breaking $56 billion compensation package from Tesla vehicles.
The 2018 pay plan, which stands as the largest executive compensation package in U.S. corporate history, was originally voided by the court in January after determining it was improperly granted. Despite Tesla's efforts to ratify the package through a shareholder vote at their annual meeting in Austin this June, the judge remained firm in her decision.
"Even if a stockholder vote could have a ratifying effect, it could not do so here," McCormick stated in her opinion. She also approved a $345 million fee for the attorneys who successfully challenged the pay package on behalf of Tesla shareholders.
In response to the January ruling, Musk expressed his frustration on X, warning companies against incorporating in Delaware. Tesla subsequently moved its incorporation to Texas.
Addressing Tesla's attempts to use the recent shareholder ratification vote to reverse the ruling, McCormick wrote that allowing defeated parties to create new facts to revise judgments would make lawsuits endless.
While this represents a major setback for Musk's compensation plans, his personal wealth has continued to grow. Recent weeks have seen his net worth increase by $43 billion, driven by a 42% surge in Tesla's stock price. His current Tesla holdings alone are valued at approximately $150 billion.
Musk retains the option to appeal this decision to the Delaware Supreme Court, as confirmed by legal representatives from Bernstein, Litowitz, Berger & Grossmann, who represented the plaintiff in this case.