Elon Musk is the richest man in the world, but do you know how much he gets paid as the CEO of Tesla?
It may be hard to believe, but Tesla approved a $56 billion salary or compensation package for Elon Musk in 2018.
But now an American court has decided to invalidate Elon Musk’s $56 billion package as too much.
It should be noted that Elon Musk will be compensated according to the increase in Tesla’s market value under this 2018 package.
With this compensation of more than 50 billion dollars, Elon Musk is considered to be the highest paid CEO in the world, who was paid more than 10 billion dollars in 2021, which means that he will receive close to 1 billion dollars per month from Tesla. are meeting
In 2018, Richard Tornetta, a Tesla investor, filed a lawsuit against this package in a Delaware court, saying that Elon Musk created his own salary plan, which violates the law.
He said board members had deliberately withheld key details from shareholders in order to approve the pay deal.
Now the court said in its decision that the Tesla board improperly prepared Elon Musk’s package.
The court said that the plaintiff should work with Elon Musk’s legal team to ensure the execution of the verdict.
Elon Musk may appeal to the Delaware Supreme Court against this decision.
According to the judge, Elon Musk’s legal team failed to prove that such high compensation was necessary to keep Elon Musk at Tesla.
He said that seeing Elon Musk’s superstar status, the Tesla board did not question whether the package was necessary to keep Elon Musk at Tesla and achieve its goals.
The plaintiff argued that the board should have offered a lower remuneration package or selected another chief executive.
He said that Elon Musk should have worked as Tesla’s full-time chief executive, but Tesla allowed him to work on other projects such as X (Twitter).
Note that Elon Musk does not receive a monthly salary from Tesla and this package is subject to the company’s financial growth.
Under this package, Elon Musk can buy Tesla shares at discounted prices and he cannot sell the company’s shares for 5 years.
If the court ruling against Apple is upheld, the Tesla board will have to propose a new compensation package for Elon Musk.
Interestingly, the court decision has come after Elon Musk had demanded 25 percent of Tesla’s shares in the past few days to strengthen his control over the company.
Elon Musk sold a number of Tesla shares to buy the X and currently owns 13 percent of the company.