Elon Musk, widely known by the media as a genius and philanthropist intent on taking humanity to Mars, he is being judged on his high salary. Musk went to trial on November 14, where he testified in his defense against the challenge of his share receipts after approval by the board of Tesla. Keep reading to find out more.
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By whom and why is it being sued?
Check now the reasons and allegations made against Elon Musk:
salary agreement
In 2018, Elon Musk entered into a $56 billion salary agreement with Tesla directors, which that year was a record deal. Musk is defending his deal, and because of that, another Tesla shareholder, Richard Tornetta, is lobbying for the document to be annulled.
Richard Tornetta
Tornetta's allegations are that Musk along with directors linked to him developed this deal so that the billionaire could finance the dream of colonizing Mars and as directors were close to Musk the performance rules to justify the high salary are very simple. With that, Tornetta went to trial for this package to be analyzed again.
Who mediated the trial?
The name of the time was Kathleen McCormick who mediated and will decide the judgment. Katthleen is already an acquaintance of Musk from Twitter shares, as she oversaw the entire process that was finalized in October. The trial, which began on November 14, took place in the US state of Delaware and will last for 5 days.
reasons
One of the reasons given by Tesla's chairman, Robyn Denholm, is the tiny amount of time that Musk stayed at Tesla, as he is the CEO, there would be a greater responsibility for the time spent at company. And, according to Tornetta's lawyers, this makes Musk work only part-time and thus discredits the high salary.
However, Musk's defense, in a deposition, reported that in 2018 he had worked at Tesla during Tuesdays, Wednesdays and Fridays and Mondays and Thursdays at his second company, SpaceX.
Judgment
The judgment will focus on the actions of the Shareholder Richard Tornetta, where the payment package was approved, as there were directors related to Elon and taken to shareholders without revealing that the installments would be fulfilled based on projections internal.