<figure id="attachment_3194541" aria-describedby="caption-attachment-3194541" style="width: 1600px" class="wp-caption alignnone"><img loading="lazy" class="size-full wp-image-3194541" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/10/42528988-afp__20250921__76bl2wr__v1__midres__uspoliticsshootingkirk_cropped_1.webp" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3194541" class="wp-caption-text">The legal saga saw Tesla granting Elon Musk interim and potential compensation totalling up to US$1 trillion. (AFP pic)</figcaption></figure>
NEW YORK: A Delaware appeals court cleared the way Friday for tech CEO Elon Musk to receive a long-contested US$56 billion Tesla pay package, reversing an earlier judgement in the long-running case.
The decision by the Delaware Supreme Court rejects a pair of judgements by Chancellor Kathaleen McCormick of Delaware&#8217;s Court of Chancery and sets the stage for another windfall for the world&#8217;s richest person.
In a pair of 2024 rulings, McCormick invalidated the 2018 package, which once loomed as historically large but has since been eclipsed by the billionaire&#8217;s most recent Tesla package.
The five-judge appeals panel determined that McCormick ruled improperly in ordering a rescission, the tossing out of Musk&#8217;s package in its entirety.
&#8220;It is undisputed that Musk fully performed under the 2018 grant, and Tesla and its stockholders were rewarded for his work,&#8221; the ruling said. &#8220;We reverse the Court of Chancery&#8217;s rescission remedy.&#8221;
Though approved by a majority of Tesla shareholders, the 2018 package ended up in court when Tesla shareholder Richard Tornetta challenged the award as excessive.
The court struck down the award in January 2024 following a five-day trial, calling the process &#8220;deeply flawed&#8221;. The board proved vulnerable to manipulation by Musk, &#8220;the paradigmatic &#8216;Superstar CEO,&#8221; wrote McCormick, who upheld her determination in December 2024 following an appeal.
But Tesla&#8217;s board has provided staunch support to Musk throughout the legal saga, approving in August 2025 an &#8220;interim&#8221; compensation award worth about US$29 billion for Musk and then unveiling a pay package worth as much as US$1 trillion.
Tesla shareholders on Nov 6 easily approved the latest package, which is tied to a number of performance and valuation targets.

MatchPoint Times

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The ruling confirmed Elon Musk fulfilled the 2018 grant, reversing the Court of Chancery’s rescission decision.

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