(Updates with premarket trading Wednesday, changes dateline)By Tom HalsWILMINGTON, Jan 31 (Reuters) - A Delaware judge tossed out Elon Musk's record-breaking $56 billion Tesla pay package on Tuesday, calling the compensation granted by the EV maker's board "an unfathomable sum" that was unfair to shareholders. The ruling, which can be appealed, nullifies the largest pay package in corporate America. McCormick directed the Tesla shareholder who challenged the pay plan to work with Musk's legal team on an order implementing the decision. The pay package granted stock option awards for approximately 304 million shares that Musk can buy at about $23.33 each, well below $191.59 where it closed on Tuesday. Amit Batish at Equilar, an executive pay research firm, estimated in 2022 that Musk's package was around six times larger than the combined pay of the 200 highest-paid executives in 2021.

Source: Forbes January 31, 2024 02:22 UTC