The company’s board will now decide whether to appeal the decision, change where Tesla is incorporated or negotiate a new pay package.
A Delaware judge’s decision to void the pay package that helped make Elon Musk the world’s richest person leaves Tesla’s board with some difficult decisions to make.
Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery on Tuesday ordered Tesla to cancel stock options awarded to Mr. Musk, the electric car company’s chief executive, worth about $50 billion. Now the company’s directors must figure out a new compensation plan that can pass legal muster and satisfy Mr. Musk, who recently demanded that the board substantially increase his ownership of Tesla.
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