Tesla's shareholder vote wasn't sufficient to approve Elon Musk's $55 billion pay package, as the judge ruled that Musk could have influenced board members.
The appeals process may take a year or longer, balancing Delaware's company governance freedom against concerns over excessive executive payouts.
Legal expert Mathieu Shapiro noted that Musk's case is 'novel' and poses unpredictable elements, as it involves the largest compensation deal recorded.
Tesla criticized the ruling as an infringement on shareholder rights, claiming it suggests judges with plaintiffs' interests control Delaware-based company decisions.
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