US Supreme Court restores Elon Musk’s record-breaking salary package

WILMINGTON: The Supreme Court of the US state of Delaware has reinstated Tesla CEO Elon Musk’s 2018 salary package, widely regarded as the most expensive executive compensation deal in corporate history.

The package, awarded to Musk in 2018, is now estimated to be worth approximately $139 billion, reflecting Tesla’s significant growth over the past several years.

According to a foreign news agency, the decision overturns a ruling by a lower court that had previously voided the compensation plan, describing it as “unthinkable” due to its unprecedented size. The Delaware Supreme Court, however, disagreed with that assessment, stating that the earlier ruling was unfair.

In its judgment, the court highlighted Musk’s role in Tesla’s transformation over the last six years, citing the company’s expansion, rising market value, and technological advancements. The justices concluded that completely canceling the pay package failed to adequately recognise Musk’s contributions and leadership.

The court added that Musk had not been sufficiently compensated for the scale and intensity of his work during that period, noting that the performance-based package was designed to reward extraordinary results rather than guaranteed pay.

The ruling marks a significant legal and financial victory for Musk and sets a major precedent in ongoing debates over executive compensation and corporate governance.