Tesla CEO Elon Musk’s victory: Supreme Court lifts ban on $55 billion salary, know the whole story

Elon Musk Pay Package: Billionaire and Tesla CEO Elon Musk has got a big relief from the Delaware Supreme Court. The court has overturned the old decision in which his $55 billion pay package was put on hold. This pay package was given by Tesla to Musk in the year 2018 as an incentive to take the company to new heights.

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In January 2024, Delaware Chancery Court Judge Kathleen St. J. McCormick had canceled Elon Musk’s pay package, citing conflict of interest among directors and not providing complete information about the plan to shareholders.

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After this decision, Elon Musk had talked about shifting Tesla’s corporate headquarters from Delaware to Texas. This decision also increased the pressure on the Tesla board to find options to keep its CEO satisfied.

In its 49-page decision, the Delaware Supreme Court pointed out several flaws in Judge McCormick’s 2024 decision and said that the 2018 pay package should be reimplemented. The court also ordered Tesla to pay a nominal compensation of $1 symbolically.

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Tesla was in difficult times in 2018

According to the Associated Press report, when this pay package was prepared in 2018, Tesla was struggling to increase the production of its electric vehicles. At that time the market capitalization of the company was between $50 billion and $75 billion.

Later, the company’s manufacturing problems were resolved to a great extent. Tesla began to meet the increasing demand, leading to a sharp rise in sales and share prices. For this reason Elon Musk became entitled to this big pay package.

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