Tesla Board Misrepresented Musk’s $55 Billion Payday, Judge Told

Tesla Inc. directors misrepresented a $55 billion pay package they recommended for Chief Executive Officer Elon Musk, a lawyer for shareholders said in closing trial arguments in a suit challenging Musk’s compensation.

Board members filled proxy disclosures with “half-truths” about the package, which would be the largest-ever awarded to a CEO, the lawyer, Greg Varallo, said Tuesday in Delaware Chancery Court. Chancery Judge Kathaleen St. J. McCormick will decide the case without a jury.

The incomplete disclosures forced investors to launch “a scavenger hunt” to get proper context on board conflicts tainting the plan and the performance goals ...