Tech billionaire Elon Musk has become a cultural icon behind his Tesla cars and his purchase of the social media website Twitter.
Unfortunately for Musk, he recently received some brutal news from a judge. Chancellor Kathaleen McCormick of the Court of Chancery denied Musk a $56 billion compensation package due to “extensive ties” with the people he negotiated the package with, according to Yahoo.
One investment manager thinks this is far from over, and that Musk will gain victory in the Supreme Court.
Based on her (Tesla) ruling, DE Judge McCormick is an activist judge at its worst. No judge has the right to determine CEO compensation. Shareholders voted twice, overwhelmingly each time, to ratify (Elon Musk’s) 2018 performance-based pay package. She will lose this fight in Supreme Court,” tweeted ARK Invest’s Cathie Wood.
Based on her @TSLA ruling, DE Judge McCormick is an activist judge at its worst. No judge has the right to determine CEO compensation. Shareholders voted twice, overwhelmingly each time, to ratify @elonmusk’s 2018 performance-based pay package. She will lose this fight in Supreme… https://t.co/cnby3pD2vd
— Cathie Wood (@CathieDWood) December 3, 2024
Fans reacted to the news on social media.
“Chancellor McCormick’s initial decision was unmistakably political, rooted in personal bias rather than legal principles. While her latest ruling may technically align with the law, it fails to correct the significant miscarriage of justice her earlier decision caused. Elon Musk is entitled to fair compensation for his work, as the board and shareholders have repeatedly affirmed their support for him. Her ruling doesn’t uphold the law—it upholds her own corruption,” one fan said on Twitter.
“Activists judges have no place anywhere,” another fan added.
“Corruption at the highest level! Shareholders approved this a while ago. Who’s really pulling the strings?” one fan wanted to know.
“This is government overreach at its finest. Government has no business in limiting an enterprise CEO’s earnings!” one fan added.
“I’m shocked that after two overwhelming votes the judge had the audacity to rule against shareholders,” another fan wrote.
“Thanks god the SCOTUS is RED and SANE,” one fan added.
It’ll be interesting to see how this case plays out.
