– A Delaware judge has thrown out Elon Musk’s record $56 billion Tesla pay package, saying the compensation offered by the electric car maker’s board was an “incalculable amount,” Unfair to shareholders.

Here are details about Musk’s compensation package.

What is Musk’s salary structure?

Musk’s 2018 compensation package created 12 tranches of options, each equivalent to 1% of Tesla’s outstanding shares at the time, potentially giving him a 12% stake in the automaker. Musk will not receive a salary.

Under the 10-year agreement, Musk is eligible to earn a portion of the options whenever Tesla achieves a series of up to 12 goals. These targets are tied to a $50 billion increase in Tesla’s market capitalization and positive hurdles for revenue and EBITDA growth. Musk subsequently achieved all 12 targets, and those options are now worth $51 billion (taking into account Musk’s cost to exercise them). He still has options.

How close was the shareholder vote?

Although the potential size of the compensation package is unprecedented, Tesla shareholders approved it with a 73% vote in 2018, which did not include the votes of Musk and his brother Kimbal. At the time, Tesla was struggling to produce its Model 3 sedan, and critics believed it would not survive fierce competition from larger rivals planning to launch their own electric vehicles.

How is Tesla stock performing?

Tesla’s stock market value was $53 billion when Musk’s plan was approved, soaring more than 2,000% to more than $1.2 trillion in 2021 before falling back to $605 billion recently. Investors who buy and hold shares when Musk’s plan is approved would see the current share price rise by about 1,000%.

What are the next steps?

In a Tuesday ruling by Delaware Chancery Court Judge Katherine McCormick, Tesla shareholders who challenged the pay plan were asked to work with Musk’s legal team to order the decision to be enforced. Once the parties agree on a final order and shareholder attorney fees, an appeal may be made to the Delaware Supreme Court.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)