Musk was sued by Tesla shareholders after being questioned that the sky-high salary was too high

Elon Musk, the richest man today, has most of his assets in Tesla stocks. However, the Tesla CEO has been in trouble lately. According to media reports, a Tesla shareholder sued Musk and the board, arguing that a compensation package passed in 2018 against Musk violated a fiduciary duty.

According to the report, Tesla shareholder Richard J. Tornetta filed a lawsuit against Musk and Tesla’s board of directors after Musk’s compensation package was approved. The lawsuit alleges that the compensation package was excessive, and the board agreed that the package violated its fiduciary duty.

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It is reported that Musk’s 2018 compensation package includes 12 stock options for a total of 101.3 million shares. According to the plan, if Musk can meet the requirements of 12 stock options, he will be able to receive corresponding stock awards, and the plan was worth about 2.5 billion US dollars at the time of approval.

Tornetta said there was an undisclosed conflict among Tesla shareholders, while Musk worked out his own compensation package with the help of his former divorce lawyer, Todd Maron, who was also at Tesla. Pull’s, General Counsel.

Musk’s 2018 compensation package was not disclosed to shareholders when Tesla’s board voted. Therefore, the compensation package should be dismissed as invalid.

In response to the lawsuit, Musk’s attorneys had asked the court for a summary judgment and tried to dismiss the lawsuit. However, the president of the court reversed the summary judgment decision and called for a hearing.

The trial is scheduled for April 18 in Delaware Chancery Court, according to documents released by legal transparency database PlainSite . That date may eventually change, though.

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