The Delaware appellate court ruled on Friday that entrepreneur Elon Musk can receive the long-disputed $56 billion compensation from his company Tesla, overturning previous decisions in the case, LETA reports citing AFP.
The Delaware Supreme Court overturns the rulings of Delaware Court of Chancery Judge Kathaleen McCormick and paves the way for the world's richest person to receive this substantial amount.
In 2024, McCormick ruled twice that the compensation awarded to Musk in 2018, which was then considered historically high, was invalidated, but it has now been overshadowed by a new compensation package from Tesla approved last month.
A five-judge appellate court found that McCormick made erroneous decisions.
"There is no doubt that Musk fully met the conditions for which he was awarded compensation in 2018, and Tesla, along with its shareholders, benefited from his work," stated the Delaware Supreme Court's ruling overturning McCormick's verdicts.
Although in 2018 the majority of Tesla shareholders approved this compensation for Musk, the case went to court after Tesla shareholder Richard Tornetta challenged the package, calling it excessive.
While the legal proceedings were ongoing, on November 6, Tesla shareholders approved a plan that could reward Musk up to one trillion dollars contingent upon the company achieving a series of ambitious goals.
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