Tesla advances huge payout to Musk after litigation delays

AFP | New York

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Tesla yesterday filed to register nearly 304 million shares tied to CEO Elon Musk’s massive 2018 pay package, which has been cleared after lengthy litigation.

Musk “entered into an implementation agreement with the company” related to the package, a securities filing said. The package is worth more than $110 billion at Monday’s stock price.

Delaware’s Court of Chancery had twice blocked the package, determining that Tesla’s process for compensating Musk “deeply flawed.” The 2018 award had originally been estimated at $56 billion, but Tesla shares have risen since then.

But in December, the Delaware Supreme Court threw out the earlier judgments, concluding “that Musk fully performed under the 2018 grant, and Tesla and its stockholders were rewarded for his work.”

The 2018 package at the time had been seen as enormous but has since been dwarfed by Musk’s 2025 package, which was overwhelmingly approved by shareholders in November.