Elon Musk’s 2018 Tesla Pay Deal Is Restored by Delaware Supreme Court

A lower-court judge had invalidated the package, saying shareholders had not been properly informed about the plan. Friday’s ruling means the pay deal, worth about $139 billion now, can proceed.

Tesla can proceed with a 2018 pay package that it awarded its chief executive, Elon Musk, the Delaware Supreme Court said on Friday, restoring an award that today is worth $139 billion.

The package had been struck down in 2024 by a Delaware Court of Chancery judge who ruled that shareholders had not been properly informed about the plan, and that Tesla’s board had not acted independently of Mr. Musk when making the award. The judge said Mr. Musk had effectively overseen his own compensation plan.

Tesla and Mr. Musk appealed that ruling, arguing that Delaware courts should honor a subsequent vote by shareholders that reaffirmed the package.

In its decision, the Delaware Supreme Court wrote that “although the justices have varying views on the liability determination, we agree that rescission was an improper remedy.”

Mr. Musk, a representative of Tesla’s board and a lawyer for the plaintiff did not immediately respond to requests for comment.

Last month, Tesla shareholders approved a new pay plan for Mr. Musk that could make him the world’s first trillionaire if the company meets a series of financial and operational goals under his leadership.

For Mr. Musk to obtain the 2018 award, Tesla had to achieve financial goals that were considered demanding at the time.

This is a developing story. Check back for updates.

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