Tesla Inc. must face trial on Musk’s mega-pay package, says Delaware judge


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Tesla Inc. must face trial on Musk’s mega-pay package, says Delaware judge

On Friday, the 20th of September 2019, A Delaware Judge had ruled that the Menlo Park-based e-vehicle titan, Tesla Inc.’s management board had to defend a trial on Tesla head Elon Musk’s multi-billion dollar pay package, which a plaintiff and Tesla Inc.

shareholder said that the package was ravelled to unjustly enrich the head of the e-vehicle company. In point fact, back in 2018, Tesla Inc., which had yet to post an annual profit, had estimated that the compensation package could be worth of a lumpsum of $2.6 billion after receiving shareholders’ approval, nonetheless several analysts along media reports predicted at that time that the project could be worth up to $70 billion Nonetheless, the compensatory award would not involve any cash bonus or salary for the Silicon Valley billionaire, Musk, 47, but would set alternative rewards of up to $650 million based on Tesla’s market valuation over the next ten years.

Further inside the bid, Delaware Court of Chancery had ruled against Tesla Inc.’s request to cancel the lawsuit filed by a Tesla shareholder, Richard Tornetta on Friday (September 20th) as beforementioned, which meant that the Tesla management board must face a trial on allegations that the company had botched to fulfil its duty to shareholders while approving the package, which had every potentiality to fill up Musk’s coffer in an unfair business practice.