The Delaware Supreme Court reinstated Tesla CEO Elon Musk's controversial 2018 pay package. This action overturns a 2024 lower court ruling that had voided the compensation deal.
The original package was valued at $56 billion. The restored stock options are now worth significantly more.
The state's highest court determined the previous ruling to rescind the pay package was improper and inequitable to Musk. The court noted that Musk fully performed his obligations under the agreement, leading to substantial gains for Tesla and its shareholders.
This decision ends a protracted legal battle initiated by a shareholder. It solidifies Musk's financial ties and long-term incentives with the electric vehicle maker.