Tesla CEO Elon Musk recovers $55 billion pay package in Delaware court ruling

Traffic moves past a Tesla dealership in the Red Hook neighborhood in Brooklyn, in New York City. (AFP file photo)
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Updated 20 December 2025
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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  • Delaware Supreme Court ruled that a lower court's 2024 decision rescinded the compensation was packed with errors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

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that the Delaware legal system had overstepped its bounds in January 2024 when Chancellor Kathaleen St. Jude McCormick rescinded the compensation in a case brought by a disgruntled Tesla shareholder.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.


Ramadan tests Pakistan’s daily wage workers but faith endures

Updated 8 sec ago
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Ramadan tests Pakistan’s daily wage workers but faith endures

  • Reduced work hours during fasting month cut already fragile incomes
  • Charities, local businesses step in as laborers try to support families back home

ISLAMABAD: Abdul Waqif grips a worn-out shovel and digs into the earth beneath the harsh midday sun, his body bent with age but still moving steadily. Moments later, the 70-year-old hoists a heavy bag of cement onto his shoulders and carries it toward an under-construction house, all while fasting.

For Waqif and thousands of daily wage laborers across Pakistan, Ramadan is not just a month of spiritual devotion. It is also a month of shrinking incomes.

Waqif migrated from Mohmand tribal district in northwestern Pakistan to Islamabad two decades ago in search of work. Like many laborers from rural and former tribal areas, he left behind limited local opportunities to earn a living in larger cities such as Islamabad, Lahore and Karachi.

In Pakistan, daily wage workers, particularly in construction and manual labor, are among the most economically vulnerable. They are paid only for days worked, receive no job security or benefits, and often rely on informal arrangements. Any slowdown in economic activity directly affects their ability to feed their families.

Economic activity typically slows during Ramadan, when Muslims fast from dawn to sunset. Employers often reduce work hours or postpone physically demanding projects to ease the burden on fasting workers. While intended as a gesture of consideration, it means fewer working hours and fewer earnings.

For laborers such as Waqif, who earns between Rs1,000-1,200 [$3.59-4.31] per day, even a slight reduction in work can be devastating.

His suhoor, the pre-dawn meal before fasting begins, usually consists of a few chapatis from a nearby hotel. The hunger and thirst that follow him through the day are constant companions as he lifts bricks and mixes cement in the heat.

But so is his faith.

“Allah gives me courage. I am hungry and thirsty, but I keep working,” Waqif said while wiping the sweat off his brow.

Back in Mohmand district, his wife, four daughters and two sons depend on the money he sends home. Every rupee matters.

“I support them with this work,” Waqif said. “I eat three meals a day here and I also have to save money for my children and send it to them.”

The reduction in work during Ramadan weighs heavily on him.

“I don’t find much work in Ramadan, and I’m worried for my family,” Waqif said.

‘HONEST LIVING’

Finding food for suhoor is sometimes a challenge. On some mornings, someone offers him a piece of flatbread. Other times, he buys what little he can afford from a nearby eatery.

Muhammad Sajid, owner of Al-Hadi restaurant in Islamabad’s G-15 sector, says he tries to ease that burden by offering meals to laborers at half price.

“We don’t let anyone go hungry,” Sajid told Arab News. “We offer sehri and iftar as much as anyone can afford.”

The restaurant serves tea, yogurt, several types of curries and parathas.

Charity groups also expand operations during Ramadan, when community support traditionally increases. The Junaid Welfare Foundation runs a roadside dastarkhwan, or communal meal spread, serving hundreds daily.

Haq Rawan Shareefi, a manager at the foundation, said around 500 people are provided iftar meals each day. The cost of one person’s iftar is Rs200 [$0.72].

“That means, on iftar and sehri, our expenses range from Rs150,000 [$538.97] to Rs200,000 [$718.63],” Shareefi said.

For Waqif, breaking his fast at sunset brings temporary relief from the physical strain of the day. But the financial uncertainty remains.

“I ask Allah for this,” he said. “May Allah give me strength to earn honest living for my children.”