--- title: "Elon Musk Fumes as Judge Takes His $55 Billion" description: "A Delaware judge has voided Tesla CEO Elon Musk's gargantuan $55 billion pay package following a lawsuit by shareholders." date: "2024-01-31" modified: "2024-01-31" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/elon-musk-judge-voided" categories: - "Elon Musk" - "Future Society" - "The Industrialists" tags: - "elon musk" - "tesla" --- # Elon Musk Fumes as Judge Takes His $55 Billion ![A Delaware judge has voided Tesla CEO Elon Musk's gargantuan $55 billion pay package following a lawsuit by shareholders.]() *\Image: Beata Zawrzel/NurPhoto via Getty Images\* A Delaware judge has voided Tesla CEO Elon Musk's gargantuan $55 billion pay package following a lawsuit by shareholders claiming it was far too much wealth to award a single individual. In a [ruling this week](), Delaware judge Kathaleen McCormick called the billionaire's cushy compensation plan "an unfathomable sum," arguing it was unfair to shareholders. Uncontested, the decision could leave a massive gap in the net worth of the [once]() richest man in the world, which could have a ripple effect on his other ventures, including SpaceX and his online echo chamber X-formerly-Twitter. McCormick's ruling also highlights the [long-standing rift]() between some of Tesla's shareholders and the company's mercurial and unpredictable CEO, who has consistently been embroiled in controversies over the last couple of years. That relationship has [steadily worsened](), especially following Musk's chaotic acquisition of Twitter, which forced him to [dig deep]() into his pockets and sell off billions of dollars worth of Tesla shares. The payout dates back to 2018, when Tesla reached a ten-year agreement with Musk. At the time, Tesla [calculated]() the package to be worth around $2.284 billion, considering the company's 2018 share value. Since then, Tesla has had several blockbuster years, with shares [hitting record highs]() in 2021. The scale of the pay package today is off the charts. [According to *Reuters*](), it's the biggest of its kind in US corporate history. *Forbes* now [lists]() Musk's net worth as just $183.4 billion, with $55.8 billion representing around 30 percent of that. "If this ruling stands, it will put a sizable dent into his net worth," University of California, Berkeley law professor Adam Badawi [told *Reuters*](). "I think essentially what the court is saying is like, 'Look, we're not literally taking money out of Elon Musk's pocket,' although he certainly will feel that way because he hasn't exercised shares." Musk, for his part, is seething. "The most salient point that was missed was that the shares could not be sold for five years after exercise of the options," Musk [tweeted](), "making it impossible to 'exercise and run.'" Experts are expecting Musk to fight the decision in court. "He may appeal because he has little to lose from appealing," Columbia law professor John Coffee told *Reuters*. "I would not expect the \[Delaware Supreme Court\] to reverse the chancellor but it certainly could happen." As [*Bloomberg* points out](), Tesla's board could also simply choose to come up with a new pay package. The move couldn't have happened at a worse time for Musk. Tesla recently disappointed shareholders by failing to hit targets in Q4 of 2023. Musk was also accused of "[blackmailing]()" Tesla shareholders by [threatening]() to pursue other AI ventures "outside of Tesla" unless he got a 25 percent voting control, a 12 percent increase. "I don’t want to control it, but if I have so little influence at the company at this stage, I could be voted out by some random shareholder advisory firm," he [argued]() during a recent earnings call. As expected, Musk is fuming at the judge's decision and is letting out his frustrations on his social media platform. "Never incorporate your company in the state of Delaware," an incensed Musk [tweeted](), before releasing a barrage of angry messages about immigration and other pet political issues. **More on Musk:** *[Here’s What Happened to Monkeys That Got the Neuralink Implant]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()