Science

Tesla: Elon Musk to stand trial to explain his $56 billion settlement

On Monday, November 14, a lawsuit began in a Delaware state court over the award of a compensation plan to Elon Musk, which provided him with more than $ 50 billion in the form of Tesla shares.

A lawsuit began on Monday in a Delaware court in the United States over the allocation of a compensation plan to Elon Musk that provides him with more than $ 50 billion of Tesla shares based on performance criteria. Electric vehicle maker shareholder Richard Thornetta filed a complaint in 2018, alleging that the contractor and the company’s board of directors failed to meet their obligations when they authorized the program.

According to him, Elon Musk dictated his terms, and the directors, given their relationship with the contractor, were not independent enough to resist this. Also accusing Elon Musk of “unjust enrichment”, Richard Thornetta asks to cancel this plan, which is supposed to stretch for ten years.

Elon Musk is due to testify on Tuesday

According to a document from his lawyers from early November, the plan netted the Tesla boss and the world’s richest man worth the equivalent of $52.4 billion in stock options four and a half years after almost all of the targets were met. At the time of its adoption, the plan was valued at $56 billion.
The trial without a jury will last five days and will be presided over by Kathleen McCormick, the judge who presided over the Twitter trial against Elon Musk. The entrepreneur, finally agreeing to buy the social network for $ 44 billion, as promised, the trial in this case did not take place.

As for his reward, Elon Musk is due to testify on Wednesday morning. Expected to attend an event scheduled on the sidelines of the G20 summit in Indonesia, the billionaire warned organizers that he could not attend in person due to this legal obligation. During a video conference, the new Twitter boss joked that his “workload has (recently) increased a lot” since his acquisition of Twitter. Elon Musk is also the head of space company SpaceX and startups Neuralink and The Boring Company.

On Monday, the proceedings began with the testimony of Ira Ehrenpreis, head of the remuneration committee on the Tesla board of directors. He is being pursued along with Elon Musk, as well as current Tesla chairman Robin Denholm, as well as current and former members of this body James Murdoch, Linda Johnson Rice and Brad Bass. Lawyers representing the defendants argue that Elon Musk’s compensation plan is linked to the performance of the company, including the stock market, and that it worked perfectly because the value of Tesla has increased more than ten times since its adoption.

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