Tesla Pay Package Case Update

WILMINGTON, Delaware (Reuters) – A Delaware judge is set to rule whether Tesla shareholders reinstated Elon Musk's $56 billion pay package, previously voided by the court.

In her letter, Kathaleen McCormick, chancellor of Delaware's Court of Chancery, stated, "I aim to issue that decision before the end of this year."

Musk's 2018 pay package is the largest in corporate history. McCormick ruled it "unfathomable" and unfair to Tesla shareholders, noting it was negotiated by directors seemingly beholden to Musk.

The judge is considering two key decisions with significant financial implications for Tesla and its investors:

1. Whether Tesla must pay $1 billion in cash or stock to the lawyers for the shareholder who sued Musk over his compensation.
2. Whether a vote by Tesla shareholders in June reinstated Musk's pay package following its voiding in January.