Delaware Supreme Court Restores Elon Musk’s 2018 Tesla Compensation Package

Supreme Court overturns lower‑court ruling, allowing the $139 billion pay plan to move forward

The Delaware Supreme Court issued a decisive opinion on Friday that reinstates Elon Musk’s 2018 compensation agreement with Tesla. The court rejected a lower‑court judgment that had declared the package invalid because shareholders were allegedly not given adequate notice of the plan.

Key points of the ruling:

• The court found that the disclosure provided to shareholders met the statutory requirements.
• It affirmed that the compensation structure, which ties Musk’s earnings to Tesla’s performance milestones, was properly authorized by the board.
• The decision clears the way for the plan—now valued at roughly $139 billion—to be implemented.

Legal analysts note that the decision not only secures Musk’s potential earnings but also sets a precedent for how public companies must communicate complex compensation schemes to investors.

With the Supreme Court’s endorsement, Tesla can proceed with the ambitious pay framework that aligns Musk’s compensation with the company’s long‑term growth and shareholder value.