Kathrine Frich
Elon Musk has spent much of the past year straddling business and politics.
After stepping into a prominent advisory role linked to Washington’s Department of Government Efficiency (DOGE) initiative, he later returned to a more active role at Tesla, refocusing on the company’s strategy and leadership.
Now, a separate and long-running legal fight over his Tesla pay has reached a decisive stage.
Bonus dispute revived
A court in the U.S. state of Delaware has ruled that Musk is entitled to reclaim his disputed Tesla compensation package, overturning an earlier decision that had voided the deal.
As part of the judgment, the court imposed a nominal penalty of one dollar on the Tesla chief executive.
The symbolic fine, equivalent to about seven Danish kroner, does not affect Musk’s entitlement to the bonus itself.
Judges described it as a technical outcome rather than a punishment.
The case stems from a 2018 decision by Tesla’s board to approve an unprecedented performance-based compensation package.
Shareholder backlash
At the time, the package was valued at about $55 billion.
A group of shareholders challenged the arrangement, arguing it diluted their holdings and that Musk exerted too much influence over the board members responsible for oversight.
A lower Delaware court initially agreed, ruling that the approval process was flawed. That decision later prompted Tesla to move its legal domicile from Delaware to Texas.
The appeal court has now reversed that ruling, restoring Musk’s right to the compensation.
Billions and costs
Due to Tesla’s share-price growth, the value of the original package has surged and is now estimated at roughly $140 billion.
Judges acknowledged Musk’s role in reshaping Tesla into a global electric vehicle leader.
However, the one-dollar award to the plaintiffs opens the door for reimbursement of legal expenses.
Those costs are expected to total hundreds of millions of dollars, which Musk will be required to cover.
Even so, the amount represents a small fraction of Musk’s overall wealth.
What comes next
The ruling brings closure to one of the most closely watched executive pay disputes in recent history.
It also comes as Tesla shareholders have approved the framework for an even larger future compensation plan.
If Musk meets the next performance milestones, he could eventually qualify for stock awards valued at up to $1 trillion, extending the debate over executive pay far beyond this case.
Sources: Delaware court ruling,
