A judge in the US state of Delware has once again ruled that Elon Musk is not entitled to the gigantic salary of DKK 400 billion that Tesla will otherwise give him.
A judge in the US state of Delaware has ruled that Elon Musk, director of Tesla, cannot claim a salary package worth DKK 400 billion.
The ruling relates to a package that was approved by Tesla shareholders back in 2018, but has been the subject of criticism and lawsuits due to its scope.
This is written by the Reuters news agency.
In January, judge Kathaleen McCormick assessed that the salary package was unreasonably high and had not been approved on an informed basis by Tesla's shareholders. The ruling followed a case brought by a disgruntled shareholder who sued Musk, Tesla and several of the company's board members.
After the verdict in January, Tesla's board decided to send the salary package to a renewed vote among the shareholders. At the company's general meeting in June in Austin, Texas, the salary package was approved again. Nevertheless, the court has now rejected this re-importation. According to Monday's decision, the wage package is still invalid.
READ ALSO: All Volkswagen car brands drop reviled model
As part of the legal costs, the judge has ordered Tesla to pay around 2.5 billion kroner to the lawyers who were involved in the appeal. However, this amount is lower than the original demand from the lawyers.
In addition, the shareholders at the general meeting also decided to change Tesla's official address from Delaware to Texas. The move reflects the fact that Tesla's headquarters are already in Austin, although the company was previously registered in Delaware. This practice is common among large corporations due to favorable tax rules in Delaware.
Tesla operates production in several locations around the world, including in California, Nevada, New York, Texas, Germany and China. The ruling is a new chapter in the long-running dispute over Elon Musk's compensation and Tesla's internal decision-making processes.
