A Delaware judge in the United States has upheld her earlier ruling to block Tesla CEO Elon Musk’s record-breaking $56 billion pay package, despite multiple attempts by Musk’s legal team and Tesla shareholders to reinstate it.
Unlike traditional CEO compensation plans that include a salary or bonuses, Musk’s package was entirely performance-based, with 12 milestones tied to Tesla’s market valuation and revenue.
Upon achieving each milestone, Musk was granted stock options priced significantly below market value. At its inception, the package was valued at $56 billion; by December 2024, it had swelled to an estimated $101 billion based on Tesla’s soaring stock price.
The plan’s defenders argued it aligned Musk’s interests with those of shareholders, incentivising him to grow the company.
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