Musk’s $55 Billion Loss Threatens Soaring Pay for Superstar CEOs

This week’s court ruling invalidating Elon Musk‘s $55 billion pay package at Tesla Inc. signals tougher court oversight of iconic corporate founders who dominate a company’s affairs through force of charisma rather than majority ownership.

The decision to undo the largest stock option award ever for a US chief executive jeopardizes Musk’s status as the world’s richest man. It could have even more far-reaching consequences for other high-profile corporate leaders who hold only minority stakes.

“It’s a reminder to the superstar CEOs of the world that they still have fiduciary duties,” said Greg Varallo, lead counsel for the ...