The Delaware Supreme Court on Friday cleared the way for Elon Musk to receive a long-contested US$56 billion pay package from Tesla, reversing earlier rulings that had invalidated the award.
The court rejected two decisions by the Delaware Court of Chancery, ruling that rescinding the 2018 compensation package in its entirety was improper.
The five-judge panel said Musk had fully performed under the agreement and that Tesla and its shareholders benefited from his performance.
The package had been challenged by shareholder Richard Tornetta, who argued it was excessive despite shareholder approval.
Tesla’s board has continued to back Musk and later approved additional interim and performance-based compensation plans, which shareholders endorsed in November.
