Delaware, USA36 minutes ago
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Elon Musk is the richest person in the world, his total net worth is around Rs 61 lakh crore.
The world’s richest man Elon Musk has got a big win in his 2018 payment package. The Delaware Supreme Court on Friday overturned the lower court’s decision, which had canceled Musk’s $56 billion compensation package. Due to the increase in the price of Tesla shares, the value of this package has now become about $ 139 billion (about Rs 12 lakh crore).
The lower court had blocked the deal almost two years ago, calling it ‘unimaginable’. This decision has given great relief to Musk. Now after this decision, Musk’s control over Tesla will become stronger, which he has been calling his main concern.
Court said- it was wrong to release Musk without compensation The Supreme Court, in its 49-page decision, said that the decision to completely cancel the payment package at the beginning of 2024 was unfair and unjust to Musk. The court said that by canceling the package, Musk does not get any compensation for his hard work of six years.
Based on Tesla’s share price at market close on Friday, the current value of this 2018 package is approximately $139 billion. Gene Munster, managing partner of Tesla investor Deepwater Asset Management, said this is a win for Tesla because they will get control of the company faster.
Stake in the company will increase to 18.1% If Musk exercises all the stock options he received from the 2018 package, his stake in Tesla will increase to 18.1% from the current 12.4%. However, to receive these shares, they will have to meet the company’s performance-related targets. Tesla did not immediately comment on the matter, but Musk posted on social media platform X, ‘I was proven right.’
What is the whole controversy of 2018? In 2018, Tesla’s board approved a large payment package for Musk. Under this, if Tesla achieves some big targets in the market, Musk will get the option to buy about 304 million shares of the company at a greatly discounted price. Tesla had achieved all these goals.
But as soon as the shareholders approved the package, an investor named Richard Tornetta sued it. Tornetta owned only nine shares of Tesla. In early 2024, after a five-day hearing, Delaware Judge Kathleen McCormick threw out the package, saying that Tesla directors were not impartial when making the decision and that important facts were hidden from shareholders.
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