A court has ruled that Elon Musk cannot retain his more than $55 billion Tesla compensation package

A court has ruled that Elon Musk cannot retain his more than $55 billion Tesla compensation package

 

A court has ruled that Elon Musk cannot retain his more than $55 billion Tesla compensation package

Five years after a shareholder lawsuit that targeted Tesla CEO Elon Musk and other directors, a Delaware court has rendered a ruling. Musk was unjustly enriched when it was alleged that he had broken his obligations to the manufacturer of solar panels and electric vehicles.

Elon Musk has been ordered by a court to relinquish a remuneration package valued at over US$55 billion, which was extended to him by the board of directors of Tesla.

Five years after a shareholder lawsuit that targeted Tesla CEO Elon Musk and other directors, a Delaware court has rendered a ruling. Musk was unjustly enriched when it was alleged that he had broken his obligations to the manufacturer of solar panels and electric vehicles.

Plaintiffs' attorneys said that Musk chose the compensation package and that it was the result of fictitious talks with directors who were not independent of him.

Defense attorneys said the compensation plan had been reasonably negotiated by an independent directors' committee, included high performance benchmarks, and received approval from a shareholder vote that wasn't even necessary.