On Tuesday local time, a judge in Delaware invalidated Musk's $55 billion compensation package, ruling that Tesla's board of directors failed to prove that the "compensation plan was fair." Previously, Tesla shareholder Richard Tornetta filed a lawsuit in the court, claiming that Musk's $55 billion salary was too high. The shareholder also said Musk influenced the board's decision to set its compensation plan through his close personal relationships with board members, including his brother.
In response to the judge's ruling, Musk responded on social media late Tuesday afternoon: "Never register a company in Delaware," and launched a vote on X to consider moving Tesla's registration to Texas, where its headquarters is located.
Musk’s fans complained about him.
Musk responded: "That's true."
Electric vehicle analyst Sawyer Merritt posted: "It's ironic that the 2018 compensation package was approved by 73% of Tesla shareholders at the time. This package also cannot be played by Elon Musk. He must meet extremely difficult market cap and revenue milestones. I.e. For him to actually hit those tough targets, he can't sell the shares for five years after exercising the options. The incentives are aligned as shareholders do well. Tesla's stock price has increased 10-fold since the 2018 compensation package was announced."
Musk responded: "Yes."