Overview
- The ruling restores Musk’s option to buy 303 million split-adjusted Tesla shares at a $23.30 strike price, a grant valued around $130–$139 billion at recent prices.
- It overturns two decisions by Chancellor Kathaleen McCormick, who had found the compensation unfair and the board’s process defective.
- The Supreme Court said throwing out the award was inequitable and would leave Musk without compensation for six years, noting Tesla was not given a fair chance to defend the plan.
- The case began with shareholder Richard Tornetta’s lawsuit alleging Musk exercised control over Tesla’s board during the award’s approval.
- Separately, Tesla’s board approved in November a new options plan for Musk that news reports say could be worth about $1 trillion if ambitious performance targets are met.