Summary
The Delaware Supreme Court restored Elon Musk's 2018 pay package from Tesla, reversing a previous court decision. This package, which could be worth billions, allows Musk to purchase Tesla shares at a discounted price based on company performance. Tesla's shareholders have also approved a more significant pay deal that could be worth nearly $1 trillion.
Key Facts
- In 2018, Tesla granted Elon Musk a pay package based on stock options if certain goals were met.
- A lower court canceled this package after shareholder Richard Tornetta sued, claiming unfair practices.
- The Delaware Supreme Court overturned this decision, allowing the original deal to stand.
- The pay package initially estimated at $56 billion is now potentially worth $120 billion due to Tesla's stock price increase.
- In 2023, Tesla shareholders approved a new, even larger pay package for Musk, which could reach $878 billion.
- Companies like Dropbox and Coinbase have moved their legal bases away from Delaware, but it remains popular.
- Tesla is now based in Texas and has adjusted rules to make it harder for small shareholders to sue.
