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A Delaware state court judge has voided a $56 billion pay package that Elon Musk negotiated with Tesla's board of directors in 2018. It is the largest compensation package in the history of corporate America.
Delaware Chancery Court Chancellor Kathaleen McCormick said that Musk negotiated the historic pay package with close friends and allies instead of people who would negotiate in the shareholders' best interests.
"Musk launched a self-driving process, recalibrating the speed and direction along the way as he saw fit," McCormick wrote.
"Given the collection of people tasked with negotiating on Tesla's behalf, it is unsurprising that there was no meaningful negotiation over any of the terms of the plan," she added.
McCormick's decision can be appealed to the Delaware Supreme Court.
After the ruling, Musk posted on X: "Never incorporate your company in the state of Delaware."
In a follow-up post, Musk wrote: "I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters."
He then created a poll asking his followers if he should move Tesla to Texas.