Yahoo Autos Elon Musk Is Begging Investors To Reinstate $56 Billion Bonus
A judge in Delaware, where Tesla is incorporated, determined in January that part-time CEO Elon Musk’s $56 billion compensation package was against the best interests of the company’s many investors, nullifying the “performance-based” award. The package, which was approved by the crony-packed Elon-tied board back in 2018, is back up for vote again among shareholders, Bloomberg reports. This vote comes as Tesla falls deeply short of projected Q1 sales, fires 10 percent of its staff, and its share value has fallen nearly 37 percent so far this year.
Chief Judge Kathaleen St. J. McCormick called the company’s directors “supine servants of an overweening master” in her statement denying Musk’s payout. Tesla Chair Robyn Denholm criticized the court’s decision, saying the judicial system was second-guessing the will of Tesla shareholders, who had approved Musk’s pay structure in 2018.
“Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value,” Denholm wrote.
