In a ruling on Monday, Delaware Court of Chancery Chancellor Kathaleen McCormick declared that Musk and his attorneys had 'no procedural ground for flipping' her earlier decision that voided his pay package.
Richard Tornetta, the shareholder opposing Musk's pay, alleged that the CEO had undue influence on the board during the crafting of the performance-based pay plan, misleading investors.
Despite shareholders initially backing the 10-year compensation package, its ambitious structure required Musk to increase Tesla's valuation more than tenfold, which was previously deemed absurd by some observers.
Musk's legal representatives argued that the substantial pay was validated by shareholder approval and was directly linked to 'extraordinary performance' that Musk was expected to deliver.
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