"The Delaware Supreme Court has reinstated Elon Musk's $56 billion Tesla pay package from 2018, overturning last year's ruling by the state's Chancery Court, according to an opinion published Friday. The state supreme court's decision draws to a close a years-long battle that left such a bad taste in Musk's mouth that he moved its incorporation out of Delaware to Texas, which prompted other companies to follow suit."
"Tesla will now likely revoke a $29 billion pay package it offered Musk earlier this year, which was meant as a hedge against the possibility that they would lose the Delaware Supreme Court appeal. The $1 trillion compensation package awarded to Musk in November is separate from that, and will continue to exist going forward, giving Musk a series of lofty goals to hit in order to unlock the full value."
"The 2018 award also set out a number of milestones that Musk had to hit in order to unlock the full value. Musk and Tesla hit all of those goals, but not before a shareholder filed suit over the award in 2018, arguing that it had been improperly negotiated and that shareholders weren't properly informed of the conflicts of interest at play."
Delaware's highest court reinstated Elon Musk's $56 billion Tesla pay package from 2018, reversing the Chancery Court's prior invalidation. The decision concludes a protracted legal fight that led Musk to relocate Tesla's incorporation from Delaware to Texas and inspired other companies to consider similar moves. Tesla is expected to revoke a $29 billion interim pay package offered earlier as a hedge against losing the appeal. A separate $1 trillion compensation plan awarded in November remains in place with performance milestones. Shareholders sued in 2018 alleging improper negotiation and undisclosed conflicts, and the Chancery Court initially struck down the package before the appeal.
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