A shareholder challenge to a $55-billion pay package for Tesla Inc (NASDAQ:TSLA) CEO Elon Musk succeeded Tuesday.

Judge Rules On Musk’s Pay: Billionaire and world's richest person Musk could be worth less in the future after a Delaware judge voided a $55-billion compensation plan for the Tesla leader.

The decision comes five years after Musk was granted one of the largest compensation plans for an executive in history, according to Bloomberg. The package was challenged by a shareholder who said there were not proper disclosures to investors before the compensation package was approved.

Tesla's board will now have to work on a new proposed compensation plan for the CEO.

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Why It's Important: The judge's ruling could impact the title of the world's richest person.

Currently valued at $204 billion by Bloomberg, Musk is the richest person in the world, with Jeff Bezos in second place at $186 billion.

Bloomberg reports the options that were part of Musk’s compensation package are valued at over $50 billion. Without the options, Musk would see his net worth fall to $154.3 billion. This would rank Musk in third place for the world's richest person, trailing Bezos and Bernard Arnault ($183 billion).

The decision comes as Musk has said he wants a larger ownership stake of around 25% of Tesla.

TSLA Price Action: Tesla shares are down 2% to $187.30 in after-hours trading Tuesday versus a 52-week trading range of $152.37 to $299.29.

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