A lawsuit filed against Elon Musk over his compensation at Tesla is to be held in a Delaware chancery court, overseen by Judge Kathaleen St. J. McCormick — the same judge who was to preside over Musk’s Twitter trial.
Tesla shareholder Richard Tornetta filed the lawsuit against Musk, claiming the CEO’s $56 billion compensation package in 2018 was excessive, calling it “the largest compensation award in Tesla history.” humanity,” according to a report by… Tech Crunch (via Entrepreneur).
Originally filed in 2019 and due to begin November 14, Tornetta refers to Musk’s unique tranched option compensation program, which was approved in January 2018 and offered Musk approximately one percent of the outstanding shares of Tesla for each goal achieved in a series of 12 performance goals.
The news also comes weeks after Twitter nearly went to court with Musk over his withdrawal from a purchase deal, before he opted to go through with the deal and take control of the media company. social last week.
Tornetta’s complaint also alleges that Musk’s acquisition of Twitter now makes him too busy to offer such significant compensation.
Both Twitter and Tesla are incorporated in Delaware, like most large corporations, due to the unique tax advantages offered in that state.
Newsletter: Musk vs. Twitter: The…
Newsletter: Musk vs. Twitter: The Battle of the Billionaire #shorts #news
“The plan devised and approved by the Board of Directors was not a typical compensation package intended to compensate the ordinary executive for overseeing day-to-day operations…