Musk wins appeal restoring $139b Tesla pay deal
Elon Musk has won an appeal restoring his controversial 2018 Tesla pay package, now valued at about $139 billion, after the Delaware Supreme Court overturned a lower court ruling that had struck down the deal.
In a decision issued on Friday, the state’s top court said a 2024 ruling that rescinded Musk’s compensation was improper and unfair, noting that it left him uncompensated for years of work at Tesla. The judgment reverses a move that had sparked criticism from Musk and raised concerns about Delaware’s reputation as a business-friendly legal hub, News.Az reports, citing Reuters.
The restored pay deal, once valued at $56 billion, has surged in worth due to Tesla’s rising share price. If Musk exercises all the stock options included in the package, his stake in Tesla would increase from about 12.4% to 18.1%, giving him greater control of the electric vehicle maker.
Musk welcomed the ruling, posting on X that he was “vindicated.” Tesla shares rose slightly in after-hours trading following the decision. The company did not immediately comment.
The ruling comes even as Tesla shareholders recently approved a new pay plan for Musk that could be worth as much as $878 billion if ambitious performance targets are met. Tesla’s board has previously warned that Musk could reduce his involvement in the company without greater voting power.
The case had been closely watched after a Delaware judge last year ruled that Tesla’s board was conflicted and had failed to fully inform shareholders when they approved the 2018 deal. The Supreme Court’s decision now settles one of the most high-profile corporate pay disputes in U.S. history.
Similar news
