A judgment on the Elon Musk renumbering at Tesla for more than 50,000 million dollars in actions based on results, started this monday in a Delaware court.
Richard Tornetta, a shareholder in the electric vehicle maker, filed a lawsuit in 2018 by consider that the employer and the board of directors of the company did not respect their obligations when they authorized this program. According to the plaintiff, Musk dictated his terms to managers who, because of his relationship with him, were not independent enough to object. He claims that Musk used his dominance over the automaker’s board to dictate the terms of the 2018 packagewhich doesn’t even require you to work at Tesla full-time.
the shareholder accuses Musk of “unjustified enrichment” and requests the annulment of this plan that was to be extended for ten years. According to a legal document from early November, the plan netted the Tesla founder and world’s richest man the equivalent of $52.4 billion in stock options over four and a half years, after practically all the objectives of the company were achieved. When the plan was adopted it was valued at a total of $56 billion.
The process, which does not require juries, will last five days and is headed by Judge Kathaleen McCormick, who brought forward the case that pitted Musk against Twitter, which did not go to trial after the tycoon agreed to buy the platform for 44,000 millions of dollars.
In this new judicial process, Musk will testify Wednesday morning. The businessman canceled his face-to-face participation in an event on the sidelines of the Indonesian G20 to attend the court.
In addition to Tesla and Twitter, Musk is the owner of SpaceX and the start-ups Neuralink and The Boring Company. In addition to Musk, Several current and former members of Tesla’s board of directors are included in the complaint. The Tesla shareholder lawsuit argues that the salary package should have required Musk to work full-time at Tesla. The company’s shareholders are concerned that Musk is distracted by Twitterwhich has warned that it might not survive an economic downturn.
The lawyers for the magnate and the other defendants argue that the compensation plan is linked to the performance of the company, including its evolution on the stock market, and maintain that it worked perfectly, since Tesla’s stock market value has multiplied by more than ten since its adoption. .
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Elon Musk is now going to trial: it is for the payment he receives for Tesla and he puts 50,000 million dollars in danger