In a time where chief executive pay have been highly disputed it seems Tesla has walked into another minefield.

This time it was of its own doing.

That's because the electric vehicle company's board approved a rather substantial pay package for Elon Musk.

According to reports, if certain milestones are achieved, growth is hit and the company delivers on its promises, he could stand to make up to $70 billion dollars. Given increased competition that seems like something that will be difficult to achieve, however, a Delaware judge handed down a ruling on Friday that Tesla's board is going to have to put up a fight to justify Musk's pay package.

A shareholder lawsuit is requesting that Tesla's board of directors, who have been highly scrutinized as being too friendly with Musk, be reorganized and Musk's hefty pay package be rescinded.

Get this: Although there are milestones baked into Musk's pay package, there are none related to profitability metrics. Isn't

A Delaware judge ruled on Friday that Tesla Inc’s board of directors must defend at a trial Chief Executive Elon Musk’s multibillion dollar pay package, which a shareholder lawsuit said unjustly enriched the head of the electric vehicle company.

Tesla estimated the 2018 compensation package was worth $2.6 billion when it received stockholder approval in March 2018, although stock analysts at the time said it could be worth up to $70 billion if the company - which has yet to post an annual profit - grew quickly.

The compensation award includes no salary or cash bonus for the Silicon Valley billionaire Musk, but sets rewards based on Tesla’s market value rising to as much as $650 billion over the next decade...

Read Article

Judge RULES: Tesla's Board MUST Defend CEO's — Elon Musk — Pay Package

About the Author