Elon Musk, already the world’s richest man, scored another huge windfall Friday when the Delaware Supreme Court reversed a decision that deprived him of a $55 billion pay package that Tesla doled out in 2018 as an incentive for its CEO to steer the automaker to new heights.
Besides padding Musk’s current fortune of $679 billion, the restoration of the 2018 pay package vindicates his long-held belief that the Delaware legal system had overstepped its bounds in January 2024 when Chancellor Kathaleen St. Jude McCormick rescinded the compensation in a case brought by a disgruntled Tesla shareholder.
Tesla didn’t immediately respond to a request for comment late Friday.
McCormick’s ruling so incensed Musk that it spurred him to spurn Delaware and reincorporate Tesla in Texas. That decision also caused Tesla’s board to scramble for ways to keep its CEO happy, including a successful effort to persuade the company’s shareholders to reaffirm the pay package, which was valued at $44.9 billion at the time of the second vote 18 months ago.
With Musk still signaling discontent, Tesla upped the ante again this year by crafting another pay package that could pay him $1 trillion if he can lead the automaker down a road during the next decade that lifts the company’s market value from its current $1.6 trillion to $8.5 trillion. Shareholders approved that pay package last month, to Musk’s delight.
That may sound like a difficult task, but it also appeared like a long shot for Musk to hit all the targets to qualify for the payout that was dangled in the 2018 package. At that time, Tesla was still struggling to expand its production of electric vehicles and burning through cash.
At the time the 2018 pay package was drawn up, Tesla’s market value was hovering in the $50 billion to $75 billion range. But then the company’s manufacturing problems eased, enabling it to start meeting hot demand for its vehicles, which in turn pumped up its sales and stock price to a level that qualified Musk for the big payout that had been promised him.
But based on evidence that included Musk’s testimony during a 2022 trial, McCormick ruled the pay package had been crafted by a board that was too cozy and beholden to the hard-charging Musk.
In its 49-page ruling, the Delaware Supreme Court cited a variety of errors in McCormick’s 2024 decision and declared the 2018 pay package should be restored. It also awarded Tesla $1 in nominal damages.
Tesla CEO Elon Musk recovers $55 billion pay package in Delaware court ruling
https://arab.news/9yhsw
Tesla CEO Elon Musk recovers $55 billion pay package in Delaware court ruling
- Delaware Supreme Court ruled that a lower court's 2024 decision rescinded the compensation was packed with errors
- Tesla doled out in 2018 the package in 2018 as incentive for its CEO to steer the automaker to new heights
Al-Ahli confirm Asian Champions League Elite progress with emphatic 5-0 win over Al-Shorta
- Al-Ahli are joined in the next round by Tractor, who claimed a 2-1 win over Qatar’s Al-Duhail through a late goal by Amirhossein Hosseinzadeh
- The first eight finishers in the league phases in east and west Asia advance to the round of 16, which will be played in March, with the quarterfinals, semifinals and final in Saudi Arabia in April
BAGHDAD: Defending champions Al-Ahli cruised to a 5-0 win over Al-Shorta in Baghdad on Monday as the Saudi Pro League side confirmed their progress to the knockout rounds of the Asian Champions League Elite alongside Iran’s Tractor FC.
Goals from Roger Ibanez, Ivan Toney, Galeno, Saleh Abu Al-Shamat and Ziyad Al-Johani sealed a comfortable win for Matthias Jaissle’s side, who moved on to 13 points from six matches to guarantee a top-eight finish in the 12-team standings.
“We did well today and we go home with three points,” Ibanez said. “That’s the important part.”
Ibanez gave Al-Ahli the lead when he converted Toney’s cut-back in the 30th minute and the former Brentford striker doubled the lead when he raced onto a pass through the middle by Galeno soon after the restart.
Galeno converted from a tight angle and Al-Shamat and Al-Johani netted in the closing stages as Al-Ahli bounced back from a surprise loss to Sharjah FC last month.
Al-Ahli are joined in the next round by Tractor, who claimed a 2-1 win over Qatar’s Al-Duhail through a late goal by Amirhossein Hosseinzadeh.
Benjamin Bourigeaud had given Al-Duhail a 35th-minute lead from the penalty spot but Shojae Khalilzadeh levelled the scores and Hosseinzadeh hit the winner two minutes into stoppage time.
Tractor moved on to 14 points and second in the table behind Al-Hilal who recorded a sixth consecutive win in the competition with a 1-0 victory over Sharjah in the UAE.
Simone Inzaghi’s side had already confirmed their place in the next phase and picked up another three points when Malcom struck with nine minutes remaining.
Al-Gharafa kept their qualification hopes alive through a 1-0 win over Al-Wahda from the UAE with Seydou Sano scoring an 87th-minute winner for the Qatari side.
Al-Gharafa climbed to six points and ninth in the table while Al-Wahda, who have qualified, dropped to fourth.
The first eight finishers in the league phases in east and west Asia advance to the round of 16, which will be played in March, with the quarteRfinals, semifinals and final in Saudi Arabia in April.
