A Delaware Chancery judge overturned Tesla (TSLA) CEO Elon Musk’s $55 billion compensation. A Tesla shareholder had sued Musk and Tesla, arguing that salaries were excessive and that the company’s board “breached its fiduciary duties.” In the decision, the judge states that “the compensation plan is subject to review under the full standard of fairness, that the defendants had the burden of proving that the compensation plan was fair and that they did not succeeded in discharging their burden” and that “the plaintiff is entitled to annulment. “The decision can be appealed. For now, however, this means that Tesla’s board will have to come up with a new compensation plan for Musk, who will see his overall net worth take a hit from this decision .
Yahoo Finance Julie Hyman reports the breakup details.
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Editor’s Note: This article was written by Stephanie Mikulich