Drumroll signals a chunk out of Musk’s Tesla pay
<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-768×513.jpg 768w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-245×164.jpg 245w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144-500×334.jpg 500w, https://www.leaprate.com/wp-content/uploads/2024/02/FIN-LP-Drumroll-signals-a-chunk-out-of-Musks-Tesla-pay-iStock-488117144.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p><span data-contrast="auto">This development puts <a href="https://www.leaprate.com/live-market-news/elon-musk-publicly-vying-for-more-control-over-tesla/" target="_blank" rel="noopener">Tesla</a> on the back foot as the payment scheme was tailored to ensure Musk’s commitment to the company, despite his SpaceX and X ventures. In 2018, when this package was tabled, many regarded it as far-fetched. After the court decision, Musk took to his social media platform, X, and commented: </span></p>
<blockquote><p><span data-contrast="auto">Never incorporate your company in the state of Delaware.</span></p></blockquote>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">According to the </span><i><span data-contrast="auto">Financial Times</span></i><span data-contrast="auto">, the package contained 16 categories around profits, revenues and market capitalisation value. It gave Musk an estimated 10% stake in Tesla. Should he achieve 12 of these 16 targets, his vested shares would exceed $50bn.</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">Tornetta sued Musk in 2018, contesting that this pay package was not fair to him and other Tesla shareholders. Musk launched a tirade of defamation and other accusations against the plaintiff when he filed.</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
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<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">Tornetta’s case eventually went to trial in 2022. Judge Kathaleen McCormick ruled that the Tesla executives were “perhaps starry eyed” and focused on Musk’s “superstar appeal” when developing this elaborate compensation scheme.</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span><span data-contrast="auto">Reportedly, Tornetta seems more interested in audio customisations for cars than tackling corporate excess. Online speculations followed the Tornetta case and many questioned his motives. However, he had his day in court and the judge recognised the validity of his concerns.</span><span data-ccp-props="{"201341983":0,"335559739":0,"335559740":240}"> </span></p>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/forex/market-news/drumroll-signals-a-chunk-out-of-musks-tesla-pay/">Drumroll signals a chunk out of Musk’s Tesla pay</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>
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