TELETRADER News
9/21, 6:34 AM (Source: TeleTrader)
more TeleTrader news

Tesla to go to court over Musk's compensation plan

Following a challenge by Tesla Inc. to Richard Tornetta's lawsuit, Vice Chancellor Joseph Slights of the Delaware Court of Chancery issued a ruling that three out of the shareholder's four claims from last year are legitimate. They concern the potential pay package for chief executive Elon Musk, with stock options potentially worth more than $55.8 billion, a historic figure in business.

The judge said the compensation plan is for "a conflicted controlling stockholder" and that judicial scrutiny is required. Tornetta argued the performance award brings corporate waste, which was dismissed, and unfair enrichment. Of note, the possible transaction was worth $2.6 billion in early 2018, when the deal was adopted.

Breaking the News / IT