Elon Musk in court to justify his $ 56 billion salary over 10 years awarded by Tesla

This Wednesday, November 16, Elon Musk was expected at the bar of the Delaware court to defend the salary which had been voted for him by the board of directors of Tesla in 2018. Indeed, the case for which he is called follows the complaint of a shareholder of the electric car manufacturer, Richard Tornetta, attacking the compensation plan with more than 50 billion dollars granted to him by the board of directors of Tesla. It is described as “the biggest compensation plan ever awarded to an executive”.

The latter therefore plans to pay Elon Musk 56 billion dollars in Tesla shares if the businessman succeeds in fulfilling a whole bunch of objectives. In four and a half years after a titanic job, the entrepreneur has already pocketed 52.4 billion dollars in stock options. A delusional sum which the richest man in the world did not need to achieve these objectives according to the plaintiff. But behind this final decision voted by the board of directors, hides the nets of Elon Musk, dictating the exact terms to the directors. In view of their relations with the leader of Tesla and their personal interests, they were not able to oppose it. Lawyers for the leader of Twitter rely on the performance of Tesla on the stock market and its value, multiplied by ten, since its adoption. A logical decision for the defenders of the CEO of Space X.

The judge in charge of the case, Kathaleen McCormick, should render her decision in a few months. The lawsuit is, according to the court, highly watched by big business because it could influence “the procedures to be followed in setting executive compensation.”


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