Delaware Supreme Court Restores Musk's Massive Pay Package

The Delaware Supreme Court has reinstated Elon Musk's 2018 compensation package from Tesla, previously valued at $56 billion, after a lower court had invalidated it. This reinstatement lets Musk receive his due compensation for transforming Tesla, with potential earnings surging to $120 billion due to stock valuation increases.

The Delaware Supreme Court has reinstated a 2018 pay package for Elon Musk initially valued at $56 billion, following a previous court's annulment of the deal. This decision comes after backlash from Musk and concerns over Delaware's reputation as a business-friendly state.

The pay deal, a groundbreaking compensation package, granted Musk options to acquire 304 million Tesla shares at a reduced price, contingent on the company achieving various milestones—a goal Tesla has met. However, Musk faced legal challenges after the plan's approval, leading to its suspension.

Following litigation that questioned Tesla's board practices, this judicial turnaround allows Musk to capitalize on his deal, marking a significant victory for the tech mogul and reinforcing Delaware's preeminence as the legal hub for U.S. businesses.

(With inputs from agencies.)