Musk's record $56bn pay deal rejected for second time

Tesla CEO Elon Musk's record-breaking $56bn (£47bn) wage grant volition not beryllium reinstated, a justice has ruled.

The determination successful the Delaware tribunal comes aft months of ineligible wrangling and contempt it being approved by shareholders and directors successful the summer.

Judge Kathaleen McCormick upheld her erstwhile determination from January, successful which she argued that the committee members were excessively heavy influenced by Mr Musk.

Tesla and Mr Musk inactive tin entreaty against the decision. Tesla has been contacted for comment.

Judge McCormick said the wage bundle would person been the largest ever for the brag of a listed company.

Tesla failed to beryllium the wage package, which dates backmost to 2018, was fair, she said.

A shareholder ballot connected the outgo passed by 75% successful June, but Ms McCormick did not hold the wage should beryllium truthful ample contempt what she called Tesla's lawyers' "creative" arguments.

“Even if a stockholder ballot could person a ratifying effect, it could not bash truthful here," she wrote successful her opinion.

The justice besides ruled the Tesla shareholder who brought the lawsuit against Tesla and Mr Musk should person $345mn successful fees but not the $5.6bn successful Tesla shares they asked for.

Some observers said a ruling successful favour of Musk and Tesla would person dealt a stroke to struggle of involvement laws successful Delaware.

"The thought of struggle rules is to support each investors" not conscionable number investors, said Charles Elson of the University of Delaware's Weinberg Center for Corporate Governance.

Mr Elson said McCormick's sentiment was well-reasoned.

"You had a committee that wasn't independent, a process that was dominated by the CEO, and a bundle that was mode retired of immoderate benignant of tenable bounds," helium said. "It's rather a combo."

Tesla is expected to entreaty the decision.