The Delaware Supreme Court has reinstated Elon Musk’s 2018 Tesla CEO compensation plan, reversing a lower-court decision that had voided it. The ruling effectively revives the stock-option-heavy award—reported as worth about $55–$56 billion at the time of decision—and closes a major chapter in a long-running dispute over how Tesla’s board and shareholder approvals were handled. For Tesla, the decision removes a big legal overhang and clarifies what the state’s top court will accept in executive pay governance, a signal many boards and investors watch closely.

Highlights:

• Lower-court reversal: A Delaware judge had previously invalidated the package on the grounds that shareholders were not properly informed, but the state’s top court disagreed and restored the plan.
• Shareholder lawsuit: The case was brought by shareholder Richard J. Tornetta, who alleged Musk and Tesla’s board breached fiduciary duties in setting the compensation.
• Valuation swing: Some coverage said the reinstated award could be worth far more at current Tesla prices—cited as as much as $139 billion—highlighting how equity-based pay can balloon with stock moves.
• Court’s rationale: The justices said canceling the pay plan went too far and left Tesla’s chief executive uncompensated for his work, according to reporting on the opinion.
• Wealth milestone: Reuters coverage referenced in the news roundup said the decision helped make Musk the first person reported to be worth $700 billion.

Perspectives:

• Delaware Supreme Court: The court restored the 2018 compensation plan after concluding the lower court’s cancellation was overly severe and inappropriate on the record presented, according to reporting on the decision. (Financial Times)
• Shareholder plaintiff (Richard J. Tornetta): The plaintiff argued the plan reflected breaches of fiduciary duty by Musk and Tesla’s board, a claim that drove the litigation and earlier lower-court victory. (CNBC)
• Tesla/Musk (appeal position): Musk appealed the prior Delaware ruling that had rejected the package and ultimately won reinstatement, ending a protracted legal fight over the 2018 plan’s validity. (The New York Times)

Sources:

• Tesla CEO Elon Musk recovers $55 billion pay package in Delaware court ruling - abcnews.go.com
• Delaware Supreme Court reinstates Elon Musk's $55 billion pay package from 2018 - businessinsider.com
• Elon Musk’s massive 2018 Tesla pay package restored by Delaware court - theguardian.com
• Delaware Court reinstates Musk’s $55B pay package, penalizes him $1 instead - Electrek - google.com
• Delaware high court reinstates Musk’s $56bn Tesla pay package - ft.com
• Elon Musk’s 2018 Tesla Pay Deal Is Restored by Delaware Supreme Court - nytimes.com
• Musk 2018 Tesla Pay Plan Reinstated After 7-Year Legal Fight - bloomberg.com
• Musk's $56 billion Tesla pay package must be restored as court rules cancellation was too extreme - cnbc.com