Delaware Chancery Court Chief Judge Kathaleen St. J. McCormick is facing intense online criticism following her second decision to block Elon Musk’s multibillion-dollar Tesla compensation package, Bloomberg reports.
The ruling, issued late Monday, sparked a furious reaction from Musk himself, who posted “absolute corruption” on X (formerly Twitter), and prominent Tesla supporter Cathie Wood, who called the judge an “activist judge at its worst.” Other Musk allies described the decision as “insane.”
The rejected stock option package, initially valued at $2.6 billion, had soared to an estimated $101.5 billion by Monday’s closing price. Tesla shares fell 1.6% on Tuesday following the ruling.
This is not the first time McCormick has faced criticism from Musk and his supporters. In January, she first voided the pay package, citing conflicts of interest within Tesla’s board. She also previously ruled against Musk in a separate matter involving his attempt to back out of a $44 billion deal to acquire Twitter.
Legal experts note the unique challenges posed by such high-profile cases involving powerful figures. Columbia University law professor Eric Talley, specializing in corporate litigation, stated that these cases are “particularly amped-up” due to the involvement of influential individuals.
Musk, with over 206 million followers on X, leveraged his massive online platform to rally his supporters against the judge’s decision. Numerous users, many using anonymous handles, expressed outrage at McCormick for denying Musk what would have been the largest executive compensation package in history.
Musk has further threatened that the ruling will drive businesses away from Delaware, a state that serves as the corporate home for approximately two-thirds of Fortune 500 companies. He has already moved several of his companies, including Tesla and SpaceX, to Texas, citing more favorable regulations and a new business court system.
