Elon Musk Appeals Court Ruling Voiding $56 Billion Tesla Pay Package

Musk and Tesla directors argue Delaware court made errors in rescinding record-breaking compensation plan approved twice by shareholders.

Elon Musk has launched an appeal to the Delaware Supreme Court seeking to reinstate his $56 billion performance-based pay package from Tesla, which was voided by the Chancery Court in 2024.
The Chancery Court ruled that Musk improperly influenced Tesla’s board during negotiations and failed to disclose key relationships, making the package invalid under Delaware corporate law.
Tesla shareholders approved the pay package twice, but the court maintained its decision, citing concerns over fairness and governance standards.
Musk has threatened to move Tesla and other companies out of Delaware in protest, sparking a trend of corporations reconsidering their incorporation in the state, referred to as 'DExit.'
Delaware lawmakers are considering legal reforms to address mounting corporate dissatisfaction, though these changes would not retroactively impact Musk’s case.