Tesla (TSLA) CEO Elon Musk is the first person in history to reach a net worth of over $600 billion. And still, he has to hear some good news before the end of the year.
The Supreme Court of the State of Delaware restored Elon Musk’s 2018 Tesla Compensation Package in a decision made on Friday, December 19th. The highest court of Delaware reversed the decision of the Chancery Court that halted Musk’s 2018 Performance Package.
The 49-page court document also mentions the history of Elon Musk’s previous compensation plans from 2009 and 2012. Getting performance-based equity in the company was not a new practice at Tesla before the 2018 Award was assigned to Musk.
Elon Musk Fully Performed Under the 2018 CEO Grant
In addition to the massiveness of the $56 billion pay package, the plaintiff also alleged that Elon Musk and the company’s directors had not performed their fiduciary duties (not working in the best interest of the shareholders).
The Supreme Court of Delaware dismissed all these claims because of the lack of evidence by the plaintiff. After around 7 years in court proceedings, Elon Musk emerged successful in getting his 2018 Tesla Performance Package.
The 2018 Tesla CEO Compensation Package was based on several milestones. These milestones were mostly based on the company’s market capitalization targets, which Musk met with success with his hard work, focus, and ability to lead the engineering and management teams at Tesla.
Musk even achieved one revenue-based milestone, which required him to deliver $75 billion in revenue. According to the court’s decision, Tesla’s 10-K Form filed on 31st December 2023 confirms that this milestone was successfully met.
Delaware Supreme Court Reverses the Chancery Court’s Rescission Remedy
“We reverse the Court of Chancery’s rescission remedy,” says the court’s conclusion of the case. The Delaware Supreme Court dismissed the recission (revocation) of Musk’s 2018 Compensation Plan.
Last year, the Tesla board of directors decided, if the 2018 CEO Award is annulled by the court, the company would grant Elon Musk a replacement compensation package.
However, after the latest decision by the Delaware Supreme Court, there won’t be a need to devise another package. Last year, Tesla shareholders had also approved Musk’s 2018 Package at the company’s Annual Meeting.
Musk’s Future Plans and a $1 Trillion Pay Package at Tesla (TSLA)
As of this writing, Musk’s net worth is $642 billion. His $56 billion Pay Package from 2018 is less than 10% of his net worth today.
It took around 7 years of legal battles to get a decision, and the world has changed drastically over these years. We are living in the age of AI and robotics. In the future, cars will be Tesla’s secondary products as the company has re-aligned its mission with Musk’s vision for the next decade.
To lead the company into the future, Elon Musk has already received approval from the majority of shareholders at Tesla (TSLA) for a $1 trillion pay package.
Elon Musk’s space exploration and astronautics company, SpaceX, is going for an IPO next year. This is going to increase his net worth multi-fold. The world is soon going to see the first trillionaire, and Musk might be a double trillionaire as Tesla excels into robots, AI-vision-based Full Self-Driving (Autopilot FSD), and renewable energy.
Stay tuned as we bring you news and updates along this journey.
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 CEO Elon Musk wins a long legal battle over his 2018 Pay Package worth around $56 billion in the Delaware Supreme Court, more.){kind=link}