Elon Musk became the first individual ever to surpass a net worth of $700 billion. The surge follows a Delaware Supreme Court ruling that reinstated his 2018 Tesla compensation package, pushing his estimated fortune to nearly $749 billion and cementing his position as the world’s richest person.
This comes after the Delaware Supreme Court reversed some findings of a judge who said the billionaire improperly influenced board members who formulated the record-breaking corporate compensation package, Bloomberg reported.
The high court on Dec. 20 concluded that Musk is entitled to a stock-based compensation plan now valued at about $140 billion.
The Bloomberg report further added that, when Tesla’s board first approved the payout, it was the largest compensation package ever granted to a U.S. executive. That record has since been surpassed by a new plan, which could add another $1 trillion to CEO Elon Musk’s earnings if future performance targets are met.
Last month, Tesla shareholders approved CEO Elon Musk’s $1 trillion pay plan, awarding him the largest potential corporate payout ever. The deal, passed with 75% of votes, is the largest pay package ever offered to a CEO. The approval came at Tesla’s annual meeting in Austin, Texas, in November.
For Musk to receive $1 trillion pay package, several conditions have been set regarding Tesla’s objectives for the coming decade. Among other things, one such key condition includes that Tesla’s market capitalisation should increase from $1.5 trillion to $8.5 trillion within 10 years.
The compensation plan is divided into 12 tranches. Each stage outlines a path for Tesla to reach an enormous market capitalisation. If Musk achieves this, he can claim an additional 12% of Tesla’s stock.
