On January 31, a judge in the US state of Delaware struck down Tesla CEO Elon Musk's $56 billion compensation package, upholding a shareholder who claimed the entrepreneur was overpaid.
A judge in Delaware's chancellor court ruled that the plaintiff, a Tesla shareholder named Richard Tornetta, "is entitled to rescission" by approving the voiding of Musk's 2018 compensation agreement.
Judge Kathleen McCormick added that the parties must now "consult" and then submit a joint letter "setting out all matters, including fees, that must be addressed to bring this matter to a judicial conclusion.".
The electric car maker's share price fell more than three percent in after-market trading after the 200-page ruling was published.
In a message published on X shortly after the decision was announced, Musk - the world's richest man - wrote: "Never register your company in the state of Delaware."
Musk's attorney did not immediately respond to a request for comment.
Musk's 2018 compensation plan is "the largest potential compensation opportunity ever seen in the public markets by several orders of magnitude," McCormick said in his ruling.
He was sued along with Tesla and some other members of the company's board of directors.
"We are extremely grateful to the court for its thorough and extremely well-reasoned decision rejecting Musk's absurdly inflated compensation package set by Tesla's board," Greg Varallo, who represented the shareholders, said in a statement provided to AFP./BGNES