A judge negates Elon Musk's big Tesla pay package.

I'm David Rancaccio in New York.

A judge has struck down Elon Musk's compensation package at Tesla valued at nearly $56 billion. The judge in Delaware where Tesla is incorporated called the amount

unfathomable and said Tesla's board failed to meet its

responsibilities to shareholders.

Marketplace of Nova Safo is here live with more.

Yeah and this comes from a lawsuit brought by a shareholder over Elon Musk's compensation

deal with Tesla struck back in 2018.

It is a record compensation amount.

The $56 billion comes from stock options, meaning Musk can purchase shares at below market rates and then eventually sell them

for more. He has to hold the stock for five years at least. In the ruling, the judge essentially

said that the Tesla Board and the people negotiating on the company's behalf were far too close to

Musk and did not exercise enough independence to act in the best interest of

shareholders and the judge said that the board never asked itself the basic question of whether

Musk needed to be paid so much in order to stay on at Tesla date.

I see Elon Musk he's mad at the state of Delaware?

He is. His response came on X or Twitter. He put out several

posts, the first saying, quote, never incorporate your company in the state of Delaware.

He also put out a poll asking whether he should change Tesla's incorporation to Texas, where Tesla has its headquarters.

The judge's ruling can be appealed, but that's going to take some time if it happens at all.

Musk had been waiting for this decision though to come down before his next compensation

agreement and he's been angling to get more shares in Tesla.

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