Delaware Supreme Court Reinstates Musk’s Record-Setting 2018 Tesla Compensation Plan
Tesla CEO's package now worth nearly $140 billion
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TL;DR
- The Delaware Supreme Court reinstated Elon Musk's 2018 Tesla CEO compensation package.
- Lower courts had twice voided the award, which was valued at approximately $56 billion when granted and could be worth $139 billion now.
- The Supreme Court ruled that canceling the pay plan outright was "inequitable" and left Musk uncompensated.
- The case originated from a 2018 derivative lawsuit by shareholder Richard J. Tornetta, who accused Musk and the Tesla board of fiduciary duty breaches.
- The lower Chancery Court found the pay plan improperly granted due to Musk's control and flawed disclosure processes.
- The Supreme Court's decision revives the pay plan but does not reverse earlier findings on governance failures.
- Musk responded on X, thanking supporters.
- Tesla shareholders had also approved a new, potentially larger pay package for Musk in 2025.