Elon Musk's $56B Tesla pay package restored by Delaware Supreme Court

Core Viewpoint - The Delaware Supreme Court has reinstated Elon Musk's $56 billion Tesla pay package from 2018, reversing a previous ruling by the Chancery Court, concluding a lengthy legal battle that influenced Musk's decision to move Tesla's incorporation to Texas [1] Group 1: Legal Developments - The Delaware Supreme Court's decision marks the end of a protracted dispute regarding Musk's compensation, which had significant implications for Tesla's corporate governance and shareholder relations [1] - The Chancery Court had initially ruled against the pay package in January 2024, but Tesla's shareholders later "re-approved" it at the annual meeting, leading to an appeal by Tesla after the judge reaffirmed her decision in December 2024 [4] Group 2: Compensation Packages - Tesla is expected to revoke a $29 billion pay package offered to Musk earlier this year, which was a precautionary measure against the potential loss in the Delaware Supreme Court appeal [2] - The $1 trillion compensation package awarded to Musk in November remains intact, requiring Musk to achieve specific performance milestones to unlock its full value [2][3] Group 3: Shareholder Concerns - The original 2018 pay package included performance milestones that Musk successfully met, despite a shareholder lawsuit claiming improper negotiation and lack of transparency regarding conflicts of interest [3]