Delaware’s Supreme Court reinstated Tesla CEO Elon Musk’s 2018 compensation plan, reversing a lower-court decision that had invalidated the award. The ruling ends a multi-year legal fight over a package initially valued around $55–$56 billion and described by one outlet as potentially worth substantially more at today’s Tesla valuation. Several reports note the dispute became a flashpoint for Musk, who later moved Tesla’s incorporation from Delaware to Texas, underscoring how governance and legal venue choices can shape big tech companies’ long-term plans.

Highlights:

• Token penalty: Electrek reports the court reinstated the plan but still assessed Musk $1 plus attorney’s fees tied to concerns about fairness in how the award was handled.
• Shareholder reset: The Guardian reports Tesla shareholders recently approved a new compensation plan framework that could be worth up to $1 trillion over roughly a decade, signaling continued investor support for performance-linked pay structures.
• Wealth context: The Guardian says Musk’s fortune was estimated at about $600 billion at the time of the decision, highlighting how Tesla equity-linked pay can amplify outcomes for executives and shareholders alike.
• Governance spotlight: TechCrunch highlights that the legal battle helped prompt Tesla’s reincorporation move to Texas, a reminder that corporate domicile choices can affect oversight, litigation risk, and how companies structure incentive plans.

Perspectives:

• Delaware Supreme Court: The court restored Musk’s 2018 Tesla compensation plan, undoing the prior ruling that had struck it down. (The Guardian)
• Tesla/Musk view (as described): The dispute became significant enough for Musk to push Tesla’s corporate home from Delaware to Texas after the earlier decision. (TechCrunch)
• Reporting on fairness concerns: Even with reinstatement, the court imposed a symbolic $1 penalty and attorney’s fees related to unfairness concerns, according to Electrek’s account of the ruling. (Electrek)

Sources:

• 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.co
• Elon Musk’s $56B Tesla pay package restored by Delaware Supreme Court - techcrunch.com
• Court restores Elon Musk’s disputed $56 billion Tesla payday - washingtonpost.com