The court again refused to pay Elon Musk $56 billion for his leadership of Tesla.

Tesla shareholders have long been trying to challenge the right of company head Elon Musk to claim compensation for his work in the amount of $56 billion at the end of 2018. The latest actions of the US justice authorities prove the rightness of shareholders who oppose the appointment of such a large remuneration to the head of Tesla.

Image source: Unsplash, Wesley Tingey

As CNBC notes, recently the Delaware District Court, represented by Judge Kathaleen McCormick, approved a January decision according to which Elon Musk should not receive compensation for his work in the amount of $56 billion. In June of this year, a meeting of Tesla shareholders supported the idea of ​​​​paying remuneration to Musk in the specified amount, which allowed the company to appeal the January court decision. Now a judge has dismissed that complaint, blocking Musk’s ability to claim money from the lawsuit.

Tesla has already announced that it plans to appeal this decision. Elon Musk himself, on the pages of his social network, called the court’s verdict the term “absolute corruption,” which can be translated from English not only as “absolute corruption,” but also “complete decay” or “complete decomposition.” Back in January of this year, Judge Katalin McCormick pointed out the illegality of assigning such a reward to Musk, citing his complete control of the board of directors of Tesla, which set the amount of the payment at a record level of $56 billion.

According to the judge, the decision of the shareholders’ meeting could not have weight in court, since the losing party, in her opinion, began fabricating new facts in order to revise the verdict, and if this trend is followed, the trials will become endless. In addition, the judge found that even when putting the issue of Musk’s compensation up for a second vote at the shareholders’ meeting, the company distorted important facts. By the way, the lawyers representing the interests of Tesla shareholders will receive $345 million for their work by court decision. Of course, they expressed their satisfaction with the court’s decision, although they initially claimed a commission of $5 billion.

It is noteworthy that the January verdict, which was not in favor of Musk, forced him to raise at the subsequent meeting of shareholders the issue of transferring Tesla’s legal address from Delaware to Texas, where the company’s headquarters have been physically located for several years. The move took place successfully in accordance with this decision. At the same time, the aerospace company SpaceX, also owned by Elon Musk, followed the same path.

All these contradictory actions, however, did not prevent Elon Musk, following the victory of Donald Trump in the US presidential election, from significantly increasing his personal wealth – by about $43 billion. Tesla’s stock price has increased by 42% over the past four weeks, It is the securities of this company that largely determine Musk’s wealth, the value of the package is now estimated at $150 billion. By the way, if the remuneration due to Musk at the end of 2018 in in the form of Tesla shares would have been paid to him, the corresponding amount would now reach a market value of more than $101 billion.