According to Sawyer Merritt, the Delaware Supreme Court has ruled to restore Elon Musk’s 2018 CEO pay package from Tesla, valued at $56 billion when vested, concluding a legal battle that lasted over seven years (source: Sawyer Merritt on Twitter). This decision, which affirms shareholder approval of the compensation plan, sets a significant precedent for AI-driven corporate governance and executive incentive structures. The ruling reinforces the trend of aligning executive rewards with long-term value creation, especially in AI-focused companies where innovation cycles are rapid and high-value leadership is critical. Businesses in the AI industry may see this as a green light to design aggressive, performance-based compensation plans to attract top AI talent and accelerate breakthrough innovation, leveraging shareholder engagement to justify such structures.

According to Sawyer Merritt, the Delaware Supreme Court has reversed the rescission of Elon Musk’s 2018 Tesla CEO compensation package, reinstating his $56 billion award and awarding nominal damages of $1 (Sawyer Merritt, X.com, Dec 19, 2025). This landmark decision not only solidifies Musk's leadership but also sets a precedent for executive incentives in technology and AI-driven companies. The ruling underscores the importance of attractive compensation structures to retain visionary leaders in the rapidly evolving AI landscape, influencing how AI firms design executive pay to drive innovation and long-term value (Sawyer Merritt, X.com, Dec 19, 2025).

According to Sawyer Merritt, Morgan Stanley’s Counterpoint Global fund has announced its support for Tesla’s 2025 CEO Performance Award plan for Elon Musk, highlighting Tesla’s strong achievements under Musk’s leadership and the company’s vast growth opportunities in AI-driven mobility, energy, and robotics sectors. The fund stated that Musk’s continued involvement is crucial due to Tesla’s pioneering role in autonomous vehicles, AI-powered manufacturing, and robotics innovation, which are transforming the automotive and energy industries. By endorsing the performance-based compensation plan, Counterpoint Global signals confidence in Tesla’s ability to capitalize on AI advancements and expand its market leadership in AI-enabled transportation and energy solutions, offering significant business opportunities for shareholders and industry partners (source: Sawyer Merritt via Twitter).