Elon Musk, the world’s richest man, won an appeal to restore his $56,000 million multi-year pay plan, which was first approved by Tesla shareholders in 2018.
The Delaware Supreme Court’s decision, released on Friday (December 19, 2025), ruled in Musk’s favor and overturned a January 31, 2024 first instance ruling that annulled the gigantic salary package.
Under this compensation proposal, Musk would receive Tesla shares for achieving various goals in ten years. At the time of approval, the amount was estimated at $56 billion.
“It is undeniable that Musk fully fulfilled the 2018 mandate and Tesla and its shareholders were rewarded for their work,” the revocation decision said.
Although the 2018 package was approved by the majority of Tesla shareholders, it was sued by Tesla shareholder Richard Tornetta, who considered it excessive.
The number could be higher
The 303 million share option package was originally worth about $56 billion, although that value could easily be over $130 billion today due to the increase in the value of Tesla securities over the past seven years.
The agreement allows Musk to buy Tesla shares at a price of $23.3 per share. The value of the company’s shares was around $481 this Friday.
The package payment was annulled in January 2024 by a Delaware judge, Kathaleen McCormick, who found that the compensation was excessive, the process for setting the amount was “flawed” and that the board did not provide shareholders with all necessary information.
In a statement released Friday, lawyers representing Tesla shareholders said they are considering next steps.
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