The world's richest man is going to court next week to defend his enormous pay package. The largest compensation grant in human history is unjustifiably paid to Musk without requiring him to focus entirely on the company, according to a lawsuit filed by a shareholder.
The trial begins on November 14 and Musk will have to juggle many different things. The deal to buy the social media company went through at the end of October, and since then Musk has set to work laying off swathes of employees, getting sued for said layoffs and generally scheming out loud about charging users $8 per month to get a blue tick.
The lawsuit over Musk's pay package wasn't helped by the buy on the social media site. Musk is also the CEO of several other companies, including the Boring Company. Musk will lend credence to Tornetta's claims that Musk is a "part-time executive" at the company.
The grant was demanded for the purpose of colonizing Mars, and the board set low bars on performance targets for Musk.
According to the company, Musk's pay package increased the value of the company tenfold.
The trial will be decided by a judge. The suit against Musk ended in him agreeing to close his $44 billion deal, which he financed with the sale of hisTesla stock.
The package didn't achieve its stated purpose of getting Musk to focus onTesla and there were no provisions limiting Musk's allocation of time or attention to non-Tesla endeavors.
According to the lawsuit, Musk has devoted substantial time and attention to various other endeavors since the Grant's approval.
Musk does not punch a clock to determine how much time he spends at the company, according to his lawyers.
Each time performance and financial targets are met, Musk can buy 1% of the company's stock at a discounted rate. Musk doesn't get anything if they don't meet. According to court papers, the company hit 11 of the targets.
Under the proposed plan, Musk would not earn any compensation at the company unless he drove tremendous growth, which would not be accomplished without significant time and attention from the CEO, according to Musk's lawyers.
The package was unfair because Musk controls the board, according to the suit.
The committee members were all associated with Musk.
Kimbal Musk, Musk's brother, sits on the board of a company that Musk is associated with. Antonio Gracias is a close friend of Musk, according to the filing. According to the filing, Gracias has invested over half a billion dollars in almost all of Musk's entities.
The filing states that Ira Ehrenpreis and James Murdoch are friends of Musk and investors in his entities. The defendants are Gracias, Murdoch and Ehrenpreis.
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