A Delaware Chancery Court judge has voided Tesla (TSLA) CEO Elon Musk's $55 billion pay package. A Tesla shareholder had sued Musk and Tesla, arguing the pay package was excessive and that the company's board "breached their fiduciary duties." In the decision, the judge says "the compensation plan is subject to review under the entire fairness standard, the defendants bore the burden of proving that the compensation plan was fair, and they failed to meet their burden," and that "The plaintiff is entitled to rescission." The ruling can be appealed. For now, though, it means Tesla's board will have to figure out a new compensation plan for Musk, who will see his overall net worth take a hit from the decision.
Yahoo Finance's Julie Hyman reports the breaking details.
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