Connect with us

Hi, what are you looking for?

Talent & Work

Tesla CEO Elon Musk To Be Tried Over Multi-Billion-Dollar Pay Package In 2018

Elon Musk alleged compensation package was exorbitant, and that the company’s board of directors had breached its fiduciary duties.

Elon Musk To Be Tried Over Multi-Billion-Dollar Pay Package

Elon Musk is set to face trial after a shareholder sued Tesla and the richest man in the world for his 2018 pay package, which numerous sources stated was worth more than $2 billion. According to reports, Musk received $2.5 billion at the moment it was approved, while The New York Times put the sum at $2.3 billion.

Nonetheless, according to CNBC, shareholder Richard Tornetta alleged in a 2018 lawsuit that Musk’s compensation package was exorbitant, and that the company’s board of directors had breached its fiduciary duties.

Musk’s legal team has already requested a summary judgment and has asked for it to be dismissed. However, in a statement sent in late February, court chancellor Kathleen St. J. McCormick stated that she is not confident that the litigation will be resolved based on “undisputed facts.”

She told CNBC that she is now cancelling oral arguments on the summary judgment petitions, and moving to court

The lawsuit originates from Musk’s 10-year performance award, which is intended to reward him for long-term leadership and assistance in achieving the company’s objectives.

In a proxy statement, the company said that Elon won’t get any remuneration, including equity that will be awarded over time, cash bonuses, or salary. He will only be paid if Tesla and all the stockholders perform exceptionally well.

The reward consists of a stock option that may only be awarded if Tesla achieves specific milestones.

Click to comment

Leave a Reply

Your email address will not be published.