Tesla CEO Elon Musk’s record-breaking $56bn (£47bn) pay award will not be reinstated, a judge has ruled.
The decision in the Delaware court comes after months of legal wrangling and despite it being approved by shareholders and directors in the summer.
Judge Kathaleen McCormick upheld her previous decision from January, in which she argued that the board members were too heavily influenced by Mr Musk.
Tesla and Mr Musk still can appeal against the decision. Tesla has been contacted for comment.
Judge McCormick said the pay package would have been the largest ever for the boss of a listed company.
Tesla failed to prove the pay package, which dates back to 2018, was fair, she said.
A shareholder vote on the payment passed by 75% in June, but the judge did not agree the pay should be so large despite what she called Tesla’s lawyers’ “creative” arguments.
“Even if a stockholder vote could have a ratifying effect, it could not do so here,” she wrote in her opinion.
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