Tech

Elon Musk is about to testify at US Court about his $50 billion Tesla payment package


Tesla tycoon Elon Musk will run for office on Wednesday as part of a test of his $50 billion salary package as CEO of the electric car giant.

musk will testify in the same Delaware court where he faces a lawsuit by Twitter to ensure that he completed his social platform acquisition.

The $44 billion (approximately Rs 3.6 lakh) purchase of Twitter brought Musk under scrutiny after he conducted mass layoffs, scaring advertisers, and opening the platform to the public. fake accounts.

irrelevant Tesla The lawsuit is based on a complaint filed by shareholder Richard Tornetta, who accused Musk and the company’s board of failing to properly perform their duties when they authorized the pay plan.

Tornetta alleges that Musk ordered directors not independent enough from their star CEO to oppose a package worth around $51 billion (about Rs 4.14 lakh) at recent share prices.

Tesla shareholders accused Musk of “illegal enrichment” and demanded the cancellation of the pay scheme that made the businessman the richest man in the world.

According to a regulatory filing, Musk earned the equivalent of $52.4 billion (approximately Rs 4.26 lakh crore) in Tesla stock options over 4 and a half years after virtually all entries. The company’s goals are met.

When the plan was approved, it was valued at a total of $56 billion (approximately Rs 4.6 lakh).

The no-jury trial began Monday with testimony from Ira Ehrenpreis, the head of the compensation committee on Tesla’s board, who said the targets were “extremely ambitious and difficult.” towel”.

Ehrenpreis argues that the board wants to push Musk to focus on Tesla at a time when the company is still struggling to gain traction.

Very unusual

The trial will run until Friday and will be presided over by Judge Kathaleen McCormick, the same judge presiding over the Twitter case.

There is no deadline for her decision which could take several months.

Jill Fisch, a law professor at the University of Pennsylvania, told AFP it was “very unusual” for this type of case to go to trial.

“There haven’t been many successful challenges to executive compensation (because) courts generally consider this a business decision,” she added.

But the court found that in this case, Musk’s ownership of about 22% of Tesla and his role as CEO “could have an undue effect” on the board and other shareholders, she noted.

Musk canceled his in-person appearance on Sunday at a G20 side event in Bali to appear in court.

When asked why he didn’t travel to the tropical Indonesian island, Twitter’s new boss joked that “his workload has increased quite a bit recently” after taking over the media giant. society.


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