READ HERE: A Delaware judge voided Elon Musk’s $55 billion pay package after a Tesla shareholder brought a case to court claiming it was excessive. The consequences of the ruling could have major implications for Tesla’s governance structure, but their implementation will hinge on a forthcoming appeal, according to Bloomberg.

The compensation case, which was launched by shareholder Richard Tornetta, argued that Tesla’s board lacked independence in crafting Musk’s pay, a view the judge supported.

Tuesday’s court verdict requires Tesla’s board to put together a new executive compensation plan, at least temporarily overhauling the record-setting package previously awarded to Musk in 2018.

A large portion of Musk’s net worth hangs in the balance, with the options valued at about $51.1 billion, according to the report. Excluding these options, his net worth would diminish to $154.3 billion, positioning him as the world’s third wealthiest individual, a step down from his prolonged stint at the top, per the Bloomberg Billionaires Index.