Elon Musk's $139 billion pay package from 2018 is restored after a years-long legal battle, with the Delaware Supreme Court ruling that the lower court's decision was 'inequitable'.
The Tesla CEO's pay package, which was initially approved by shareholders, was twice voided by a lower court judge due to concerns about its fairness. The Delaware Chancery Court Chancellor, Kathaleen McCormick, found that the Tesla board failed to prove the compensation plan's fairness. Despite shareholders re-approving the package, McCormick rejected it again, citing its unfairness.
However, the Delaware Supreme Court's recent ruling overturns this decision, stating that the lower court's opinion was incorrect and that the 2018 pay package should be restored. This decision leaves Musk without compensation for his efforts over six years. Musk's net worth, estimated at $644 billion, is largely attributed to his ownership of Tesla shares, which are near their record high.
Musk has also received a new pay package from Tesla, potentially worth $1 trillion, contingent on Tesla's stock performance. Additionally, his wealth is further diversified through his primary shareholding in SpaceX, which he plans to take public next year, promising a significant increase in his net worth.
Musk expressed gratitude for his supporters' unwavering backing, acknowledging the Delaware Supreme Court's decision as a positive outcome for his compensation.
