Musk to defend astronomical £47.7bn Tesla pay package in US court
Elon Musk is set to appear in a US court as soon as tomorrow as he is bound to take the stand and defend his astronomical $56bn (£47.7bn) pay package.
The serial entrepreneur was taken to court by a company shareholder who argued that Tesla’s board – and consequently investors – was made to approve the term’s of Musk’s 2018 package.
As part of the conditions negotiated, Musk is not required to work full time at the company, according to Reuters’ reports.
The complainant seeks to rescind the salary, as they argued the six-figure package should have required Musk to work full time.
The billionaire – who could become the world’s first trillionaire – as well as Tesla’s directors denied the accusations, saying the package helped Musk steer the company through a critical time.
CityAM has approached Tesla for comment.
Commenting on the trial, activist shareholder Tulipshare said: “Musk’s $56bn Tesla pay package has significantly boosted Musk’s personal wealth, but has not helped Tesla become a more sustainable business, hurting stakeholders and preventing the company from acting as a force for good.
Tulipshare made the headlines last month when it launched a campaign to tie Musk’s salary to Tesla’s environmental, social and governance (ESG) performance.
The news comes as Tesla’s share price went down 2.78 per cent after the EV giant announced it would collaborate with Chinese authorities following a fatal car crash on Sunday.