The Tesla board has capitulated to the terms presented by Elon Musk. The company's lawyers argued that a judge's decision has harmed shareholders by losing their voice in compensation for the CEO, considered a unique figure in generations, and they have seen the stability of the company wobble.
In his criticisms of the Chancery Court, Musk, who leads companies like Tesla and SpaceX, has questioned the impartiality of the decisions. The stock option package granted to Musk has fluctuated in valuation, reaching $56 billion at one point and then rising to $101.5 billion.
Although Tesla shareholders supported CEO Elon Musk's compensation plan in an annual vote, the Court did not consider it sufficient and upheld its original decision. As a result, Tesla has appealed the ruling twice, arguing that the will of the shareholders has been ignored and Delaware corporate law violated.
The legal showdown between Musk, the Tesla board, and the shareholders has reached unprecedented levels. The battle for Elon Musk's record salary package, valued in the billions, is being contested in higher courts, triggering debates about shareholder power and corporate decisions.
Musk's salary package value has remained around $63 billion, according to the Bloomberg billionaire index. Meanwhile, mogul Musk has seen his net worth decrease by 31% this year, affected by the volatility of Tesla's stock and other external factors.
