A Delaware judge on Tuesday invalidated Elon Musk's $56 billion pay package for his work as Tesla's chief executive, siding with a Tesla shareholder who called the package unfair. Musk is one of the world's wealthiest people, according to Forbes Magazine, and his 2018 compensation package for leading the electric-vehicle maker much larger than any executive pay package to date. An investor named Richard Tornetta sued Musk and several Tesla directors in 2018, claiming Musk's pay package was unfair...

Elon Musk is not entitled to landmark compensation package awarded by Tesla’s board of directors that is potentially worth more than $55 billion, a Delaware judge ruled Tuesday. The ruling by Chancellor Kathaleen St. Jude McCormick comes more than five years after a shareholder lawsuit targeted Tesla CEO Musk and directors of the company. The shareholder's lawyers argued that the compensation package should be voided because it was dictated by Musk and was the product of sham negotiations with directors who were not independent of him...

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.  For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Stephanie Mikulich...

A Delaware judge on Tuesday ruled that Elon Musk's record-breaking $56 billion Tesla pay package could be tossed, calling the compensation granted by the EV maker's board "an unfathomable sum" that was unfair to shareholders. Shares of Tesla dropped about 3% in extended trade. The ruling may sweep away the largest pay package in corporate America...

WILMINGTON (Reuters) -A Delaware judge tossed out Elon Musk's record-breaking $56 billion Tesla pay package on Tuesday, calling the compensation granted by the EV maker's board "an unfathomable sum" that was unfair to shareholders. Shares of Tesla dropped about 3% in extended trade, and some investors seized on the ruling in hopes it might prompt Tesla to overhaul its governance. The Tesla board has been criticized as failing to provide oversight of its combative, headline-making CEO, who has fought regulators and led several other companies at the same time...