Elon Musk vs. The Judge: A Pay Package Battle

Elon Musk has been in a public spat with a Delaware judge over his $56 billion pay package from Tesla. The judge, Kathaleen St. J. McCormick, rejected the idea of reinstating the package. She argued that the stock options were approved under "deeply flawed" conditions and that Musk had too much control over the company. Musk took to his website, X, to vent his frustration. He claimed the judge's decision was "absolute corruption. " Billy Markus, the creator of Dogecoin, also chimed in, labeling McCormick an "activist judge. " The dispute began in 2018 when Tesla shareholders approved a massive pay package for Musk. However, a shareholder, Richard Tornetta, sued, alleging that the process was unfair. McCormick initially struck down the package in January and then again on Monday. Tesla tried to get the package reinstated by pointing out that shareholders voted again to ratify it in June. But McCormick wasn't convinced. She said creating new facts after a trial to change the outcome wasn't fair. The judge wrote that the board should have set a fair price for Musk's work instead of capitulating to his demands. This story raises questions about the power dynamics within companies and the role of judges in corporate decisions.