Key Takeaways
- Elon Musk’s net worth surged to $749 billion after a shareholder-backed pay deal was upheld.
- The Delaware Supreme Court overturned a prior ruling, affirming that Musk fulfilled required milestones for the massive stock-based pay.
Elon Musk just got richer. The Tesla CEO saw his net worth rise to $749 billion after the Delaware Supreme Court on Friday overturned a lower court ruling that had invalidated his 2018 Tesla compensation package, according to Forbes.
The decision effectively restored a pay package now estimated to be worth approximately $139 billion, up from its original valuation of around $56 billion due to Tesla stock appreciation.
The lawsuit was filed seven years ago by a Tesla shareholder who alleged that the company misled investors in approving a compensation plan designed to reward Musk with stock options, contingent upon Tesla meeting a series of demanding financial milestones.
In early 2024, Chancellor Kathaleen McCormick of the Delaware Court of Chancery ruled against Musk, voiding the Tesla pay package and describing the approval process as deeply flawed. Chancellor McCormick later reaffirmed the ruling despite Tesla’s attempt to cure the defect through a subsequent shareholder vote ratifying the compensation plan.
According to a Friday ruling, the Supreme Court agreed with the Delaware court that the approval process suffered from material flaws but said invalidating the entire compensation agreement was an excessive remedy.
The court noted that Musk had fully met the performance milestones tied to the package and that voiding it would leave him uncompensated for six years of work.
The ruling could restore Musk’s voting power at Tesla, strengthening his control over the company’s strategic direction.
Musk’s fortune recently broke through $600 billion as SpaceX’s valuation reportedly climbed to $800 billion. Optimism among investors about Musk’s financial future is rising, boosting expectations that he could reach trillionaire status by 2029.
Source: https://cryptobriefing.com/elon-musk-net-worth-record-749-b-court-restores-tesla-compensation/
