The world’s richest person Elon Musk has got a big victory in the court. The Delaware Supreme Court has ruled to restore the $55 billion pay package given to Musk by Tesla in 2018.
Business News: The world’s richest man Elon Musk has got a big victory in the court. The Delaware Supreme Court has overturned a 2018 decision rejecting his $55 billion pay package. The package was given as an incentive to Musk as he took Tesla to new heights.
In 2018, a court rejected this package, which hurt Musk enough that he considered leaving Delaware and re-registering Tesla in Texas. With this new decision, the way has been cleared for Musk to get his salary package.
History of controversy
In 2018, Tesla decided to give a huge bonus package to Elon Musk. This package was completely linked to the performance of the company. Under Musk’s leadership, Tesla achieved several important milestones at that time, including Model 3 production and sales records. However, some shareholders challenged this pay package, considering it too high and under the influence of the board. He alleged that Tesla’s board was following Musk’s orders and hence the package was not in the interest of the shareholders.
In 2024, a Delaware court accepted the challenge and struck down the package. Due to this, Musk did not get the money he was supposed to get under the 2018 package. At that time the value of this package was believed to be around 139 billion dollars.
Delaware Supreme Court decision
Recently the Delaware Supreme Court overturned the 2024 decision in a 49-page decision, citing several errors. The court said that the 2018 salary package was based on Musk’s performance and in the interest of the company, so it should be reinstated. After this decision, Musk will now receive a package of $139 billion, which is a big financial success for him.
Elon Musk is currently the richest person in the world with a net worth of $642 billion. This year his wealth has increased by $210 billion. Tesla has prepared another salary package for Musk this year, in which he is expected to get a payment of up to $1 trillion. Musk’s company SpaceX is also preparing to launch the world’s largest IPO (Initial Public Offering) next year. Experts estimate that SpaceX’s valuation could exceed $1 trillion. If this IPO is successful, Musk can become the world’s first trillionaire.
Frustrated by the 2018 controversy and the 2024 decision, Musk had decided to re-register Tesla from Delaware to Texas. This step was taken to ensure Musk’s strategy and his business independence. Experts say Musk’s legal victory will not only strengthen his financial position, but is also a positive sign for Tesla and his other business ventures.
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