“Was the richest person in the world overpaid?” That’s how the Delaware Court of Chancery (the Court) began the 200-page opinion in Tornetta v. Musk to rescind Elon Musk’s entire $55.8 billion 10-year equity compensation package after a ruling that the directors of Tesla breached their fiduciary duty in approving such a robust compensation package for its chief executive officer. The decision in the case and the factors focused on by the Court offer key lessons for boards and compensation committees and is a reminder of the importance of following and documenting the process for approving executive compensation. READ MORE