Elon Musk Podcast Musk Wins Delaware Court Restores Tesla Pay Package in Full
Dec 20, 2025
The Delaware Supreme Court has reinstated Elon Musk's eye-popping $139 billion pay package after a long legal battle. The case revolved around a shareholder lawsuit alleging Musk's control over Tesla. Musk publicly criticized Delaware's legal system, which sparked controversy. The court's 49-page decision deemed the previous rescission too extreme. As Musk resumes his compensation, the implications for corporate governance and compensation structures could be significant, especially given the context of a potential trillion-dollar deal.
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Supreme Court Restores Musk's Pay Package
- The Delaware Supreme Court restored Musk's 2018 Tesla pay package worth $139 billion by reversing a lower court rescission.
- The ruling centers on remedy limits rather than disputing findings about control or flawed process.
Nine-Share Lawsuit Triggered Major Case
- Richard Tornetta, a shareholder with nine shares, filed the derivative suit challenging the package.
- Chancellor Kathleen McCormick later found Musk controlled Tesla and ruled against the package in 2024.
Entire-Fairness Standard Led To Rescission
- Chancellor McCormick found the board capitulated to Musk and applied the entire-fairness standard.
- She ordered total rescission after concluding the board failed to disclose material information to shareholders.