# Delaware court rules Musk's $56 Billion 2018 pay package was improper, clawback required **URL:** \ **Category:** Macro Economic Trends and Risks\ **Created:** [January 31, 2024, 1:32am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225 "2024-01-31T01:32:27Z")\ **Posts on this page:** 11\ **Page:** 1
**Author:** ![intercst](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/intercst/32/1543_2.png) [@intercst](https://discussion.fool.com/u/intercst)\ **Post date:** [January 31, 2024, 1:32am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/1 "2024-01-31T01:32:27Z")
… and the Delaware court has the final say on these matters, there’s no appeal. > **[Judge orders Tesla to undo Elon Musk’s $56 billion pay package](https://www.washingtonpost.com/technology/2024/01/30/elon-musk-pay-package/?pwapi_token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJyZWFzb24iOiJnaWZ0IiwibmJmIjoxNzA2NTkwODAwLCJpc3MiOiJzdWJzY3JpcHRpb25zIiwiZXhwIjoxNzA3OTczMTk5LCJpYXQiOjE3MDY1OTA4MDAsImp0aSI6IjZkYmUwNzZjLTkzMTctNDdlZS04M2MzLWIyOTUxZmE4YzY3ZCIsInVybCI6Imh0dHBzOi8vd3d3Lndhc2hpbmd0b25wb3N0LmNvbS90ZWNobm9sb2d5LzIwMjQvMDEvMzAvZWxvbi1tdXNrLXBheS1wYWNrYWdlLyJ9.FG6LUrF_nBk6NF_VGj5fF73X_kjifOIKD2p8XzlWX7Q&itid=gfta)** > > The ruling by a Delaware court stems from a Tesla shareholder lawsuit over the tech billionaire’s 2018 compensation package. intercst ---
**Author:** ![JimA759s](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/jima759s/32/2844_2.png) [@JimA759s](https://discussion.fool.com/u/JimA759s)\ **Post date:** [January 31, 2024, 2:00am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/2 "2024-01-31T02:00:53Z")
You do not fool around with the Delaware Chancery Court! They do not play games and they know what they are doing! JimA ---
**Author:** ![Goofyhoofy](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/goofyhoofy/32/4721_2.png) [@Goofyhoofy](https://discussion.fool.com/u/Goofyhoofy)\ **Post date:** [January 31, 2024, 2:44am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/3 "2024-01-31T02:44:15Z")
Gonna be hard to conjure up another 13% ownership out of thin air, given that the court already thinks the Board is a bunch of lackeys. ---
**Author:** ![Leap1](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/leap1/32/72176_2.png) [@Leap1](https://discussion.fool.com/u/Leap1)\ **Post date:** [January 31, 2024, 2:56am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/4 "2024-01-31T02:56:49Z")
xAI There is no turning back. Musk will make much more money out of this folly. Tesla shareholders look like they just own a car company. ---
**Author:** ![mostlylong](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/mostlylong/32/3943_2.png) [@mostlylong](https://discussion.fool.com/u/mostlylong)\ **Post date:** [January 31, 2024, 2:59am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/5 "2024-01-31T02:59:56Z")
> [@intercst](#): > > … and the Delaware court has the final say on these matters, there’s no appeal. Single Stock Risk Factors: 1. Management Risk 2. All Others ---
**Author:** ![rainphakir](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/rainphakir/32/1497_2.png) [@rainphakir](https://discussion.fool.com/u/rainphakir)\ **Post date:** [January 31, 2024, 3:05am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/6 "2024-01-31T03:05:35Z")
No appeal? Here’s what Reuter says; [https://www.reuters.com/legal/judge-rules-favor-plaintiffs-challenging-musks-tesla-pay-package-2024-01-30/](https://www.reuters.com/legal/judge-rules-favor-plaintiffs-challenging-musks-tesla-pay-package-2024-01-30/) { The ruling, which can be appealed, … It can be appealed to the Delaware Supreme Court once the parties agree on a final order and on fees for the shareholder’s attorneys, which will be paid by Tesla. } 🤔 ralph ---
**Author:** ![Leap1](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/leap1/32/72176_2.png) [@Leap1](https://discussion.fool.com/u/Leap1)\ **Post date:** [January 31, 2024, 3:15am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/7 "2024-01-31T03:15:32Z")
Musk is an interesting character. He is not dealing with personalities in any of this. He is dealing with public perceptions. He knew there was a sort of divorce coming from Tesla. He is creating acrimony. No one can blame him for trotting off to xAI and making fortunes. ---
**Author:** ![jdc115](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/jdc115/32/1338_2.png) [@jdc115](https://discussion.fool.com/u/jdc115)\ **Post date:** [January 31, 2024, 8:13am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/8 "2024-01-31T08:13:44Z")
I’d think there would be plenty of lawsuits if he trotted off with technology developed at Tesla. If all the pieces became quite successful on their own, I would think it would make sense to spin them off to their own companies where they may have a larger market. Or the US Gov’t will eventually try to break it up anyway if for example Tesla is the only company to solve FSD and has too much of an advantage. ---
**Author:** ![Leap1](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/leap1/32/72176_2.png) [@Leap1](https://discussion.fool.com/u/Leap1)\ **Post date:** [January 31, 2024, 8:48am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/9 "2024-01-31T08:48:14Z")
People leave companies and then get hired out by the company they left every day of the week. It might be a lawsuit so what? Flimsy case. Tesla would not reimburse him for his worth. Telsa has sourced xAI for almost a year now. It is too late to say this is a new situation. The structure has been in place for a while now. Musk is not leaving with anything. He has been selling a tech service to Tesla for more than half a year. It happens to be central to what Tesla needs. > [@jdc115](#): > > I’d think there would be plenty of lawsuits if he trotted off with technology developed at Tesla. Recently we heard FSD is a disaster. Won’t work. Tesla had failed. xAI has the talent to make it succeed.(supposedly? Read who works there on their site) Musk runs that company. He has a fiduciary responsibility to that company for what it is worth. Tesla’s AI for FSD did not pan out. Tesla is just a car company. ---
**Author:** ![jdc115](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/jdc115/32/1338_2.png) [@jdc115](https://discussion.fool.com/u/jdc115)\ **Post date:** [January 31, 2024, 11:19am UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/10 "2024-01-31T11:19:01Z")
> [@Leap1](#): > > xAI has the talent to make it succeed.(supposedly? Read who works there on their site) Musk runs that company. He has a fiduciary responsibility to that company for what it is worth. > > Tesla’s AI for FSD did not pan out. > > Tesla is just a car company. I won’t argue your last point.. my point is Musk can take the technology with him, it belongs to Tesla. He has so many different things happening at different companies that the misuse of resources may get raised at some point. When he pulled Tesla engineers into Twitter during the transition is a pure abuse of his fiduciary duties. Any IP or idea they contributed should belong to Tesla shareholders. ---
**Author:** ![Leap1](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/leap1/32/72176_2.png) [@Leap1](https://discussion.fool.com/u/Leap1)\ **Post date:** [January 31, 2024, 5:53pm UTC](https://discussion.fool.com/t/delaware-court-rules-musks-56-billion-2018-pay-package-was-improper-clawback-required/101225/11 "2024-01-31T17:53:56Z")
Depends on whose standards you use. Simple employment is not a fiduciary responsibility. The coders with xAI probably are shareholders. Larger ones at that. Musk does not need to take Tesla’s FSD AI stuff. He is augmenting it from xAI. The augmented code is the value eventually…possibly. Hardware \>\> firmware \>\> OS \>\> apps