Elon Musk, the world's richest man, is set to significantly increase his fortune following a landmark decision by the Delaware Supreme Court. After a protracted seven-year legal battle, the court on Friday cleared the way for the tech tycoon to finally receive his contested 2018 CEO pay package from Tesla. This ruling reverses a previous judgment by Chancellor Kathaleen McCormick of Delaware's Court of Chancery, which had found that Musk improperly influenced board members in the formulation of the compensation plan. The Supreme Court's judges stated, "We reverse the Court of Chancery’s rescission remedy and award $1 in nominal damages," thereby reinstating the long-contested package.

The $56 billion Tesla pay package from 2018 was originally designed as an incentive for Elon Musk to elevate the electric vehicle maker to unprecedented heights. The compensation plan had been held in abeyance after an investor, who reportedly held only nine shares of Tesla, successfully sued to block it in Delaware, where Tesla was incorporated at the time. The initial ruling against Musk had raised questions about corporate governance and the independence of board members in approving such substantial executive compensation.

In its unanimous decision, the appeals panel comprising five judges asserted that McCormick had ruled improperly by ordering a complete rescission of Elon Musk's 2018 Tesla pay package. The Supreme Court highlighted that "It is undisputed that Musk fully performed under the 2018 grant, and Tesla and its stockholders were rewarded for his work." Furthermore, the court emphasized that canceling the CEO’s entire 2018 Tesla payout would "leave Musk uncompensated for his time and efforts over a period of six years," acknowledging the substantial contributions he made during that period.

While the compensation plan was initially approved at an estimated $56 billion by Tesla board members, its current valuation has dramatically increased. The Delaware Supreme Court concluded that, at present, Elon Musk is entitled to a stock-based compensation plan now valued at an astonishing $140 billion. This significant increase underscores the growth and success Tesla has experienced under Musk's leadership since the original approval.

This massive payout is expected to further bolster Elon Musk's already staggering wealth. His net worth has recently surged to record levels, reportedly breaching the $500 billion mark for the first time in history. According to Forbes Real Time Billionaires, Musk's wealth currently stands at $679.4 billion, solidifying his position as the richest person in the world. The addition of the $140 billion from his reinstated Tesla pay package is anticipated to widen the gap between him and other billionaires, pushing his fortune to even greater heights.