Big win for Elon Musk: Tesla CEO to get 2018 pay package now valued at $140 billion — Will his net worth increase?
Elon Musk, the world’s richest man, is on track to become even richer after the Delaware Supreme Court on Friday cleared the way for the tech mogul to receive his 2018 CEO pay package from Tesla after a seven-year battle.
Musk’s 2018 Tesla pay package will be reinstated after the Delaware Supreme Court overturned a judge’s decision that previously found the CEO improperly influenced board members who drafted the compensation plan.
“We reverse the Cancer Court’s decision to vacate and award nominal damages of $1,” the Delaware judges wrote in their opinion.
In 2018, the long-discussed $56 billion Tesla pay package was distributed as part of the incentive for Elon Musk to take the EV maker to new heights.
Elon Musk’s salary package: What did the Delaware Supreme Court say?
Reversing a pair of decisions by Delaware Court of Chancery Chancellor Kathaleen McCormick, the Supreme Court said Elon Musk was rewarded for his work at Tesla.
“It is undisputed that Musk performed fully within the scope of the 2018 grant and that Tesla and its shareholders were rewarded for their work,” the Friday decision said.
The five-judge appeals panel unanimously ruled that McCormick acted improperly in making the cancellation decision, saying it was not right to completely cancel Elon Musk’s 2018 Tesla salary package.
In a unanimous decision Friday, Delaware’s highest court said canceling the CEO’s entire 2018 Tesla payout would “leave Musk without compensation for his time and efforts over a six-year period.”
Musk’s 2018 compensation plan was suspended after an investor successfully sued to block the plan in Delaware, where the electric car maker was based at the time. The investor himself owned nine shares of Tesla; according to court records Bloomberg showed.
How much money will Elon Musk get?
Elon Musk was entitled to receive approximately $56 billion when the salary was approved by Tesla board members.
The Delaware supreme court on Friday ruled that now the richest person in the world is entitled to a stock-based compensation plan currently worth $140 billion.
Will Elon Musk’s net worth increase?
Elon Musk’s net worth recently rose to record levels, surpassing $500 billion, the first of its kind in history.
According to Forbes Real Time Billionaires, his fortune currently stands at $679.4, making Musk the richest person in the world.
The $140 billion payment Elon Musk will receive is expected to increase his wealth again and widen the gap between him and other billionaires.
