Elon Musk to Face Trial Over $56 Billion Tesla Pay Package in 2018
- A Tesla shareholder is suing Elon Musk over his 2018 pay package, which he said is huge and not in accordance with his performance
- The investor stated that the $56 billion pay package is not corresponding with the performance benchmark set for Musk
- Tesla said that the pay is per the increase offered to every shareholder at Tesla and stated that as the largest shareholder, Musk was well entitled to the package
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The world’s richest man is being dragged to court over his humongous pay package in 2018.
A Tesla shareholder who filed the suit in 2019 seeks to cancel Musk’s 2018 pay deal, claiming the package is the biggest in history to any human and is unjustly paid to the Tesla CEO without asking that he focuses solely on Tesla.
Source: Getty Images
Twitter troubles trail Musk
TechCrunch reports that the trial is scheduled for November 14, which would see Musk heading to court after his deal to buy Twitter for $44 billion went through at the end of October.
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Musk is also getting sued by former Twitter employees after they were laid off last week in what has been considered a hurried approach.
Bloomberg reports that the decision by the Tesla board to authorise the package for Musk in 2018 was soiled with controversies, conflicts of interest and improper disclosures about key performance benchmarks, the disgruntled shareholder said.
Musk is Tesla’s largest shareholder, and he must testify at a Delaware court on November 14 over the claim by investor Richard Tornetta, who said Musk incited the pay package.
Tornetta argues that the pay package needs to be commensurate with the benchmark set for the billionaire that it was for the funding of his Mars project.
According to Tesla, the CEO’s pay package delivered a tenfold rise in value to shareholders.
Elon Musk leads the List of world’s highest-paid CEOs in 2021
Legit.ng reported that Tesla and SpaceX CEO Elon Musk emerged as the world’s highest-earning CEO in 2021.
The world’s richest person has been on the list for the fourth year. However, his pay package has been more from several share options, adding about $78 billion to his fortunes of $296 billion.
Daily Mail reported that the Tesla CEO’s pay is humongous, leaving the remaining 23 CEOs making half of what he makes, a combined total of $6.3 billion.
Source: Legit.ng
