The compensation package, approved by shareholders in 2018, allowed Musk to purchase up to 304 million Tesla shares at a pre-set price, contingent upon meeting performance goals, which he achieved. Tesla's stock currently trades significantly higher than the pre-set price. The legal battle has financial implications, with McCormick awarding $345 million in attorney fees to the shareholder who sued Musk, far less than the $5 billion requested. Despite the controversy, Musk's net worth has surged, reaching approximately $416 billion, bolstered by the increasing value of Tesla, SpaceX, and xAI.
Key takeaways:
- Elon Musk filed an appeal with Delaware’s Supreme Court after a state judge rejected his $56 billion compensation package for the second time.
- The appeal follows Delaware Chancellor Kathaleen McCormick's ruling against Tesla's bid to restore Musk's compensation package, which was initially approved by shareholders in 2018.
- McCormick cited flaws in Tesla's arguments and awarded $345 million in fees to the attorneys for the shareholder who sued Musk.
- Musk's net worth surpassed $400 billion due to the growing value of Tesla, SpaceX, and xAI, despite the initial rejection of his pay deal.