Tesla is again seeking approval from shareholders in order to pay Elon Musk’s compensation amount.
Riikka Kajander,
Vilma Romsi
22:12•Updated 22:17
At the end of January, a court in Delaware, USA, ordered the electric car manufacturer Tesla to fire the company’s CEO Elon Musk’s of the 56 billion dollar, i.e. approximately 51.5 billion euro, fee agreement agreed with
Now Tesla is seeking approval from the shareholders again in order to pay the bonus amount due to Musk.
The giant bonus negotiated in 2018 was the largest in US corporate history. In January, the judge Kathaleen McCormick considered that the Tesla representatives who negotiated the rewards had not informed the shareholders about the reward in a relevant manner. According to McCormick, the “incomprehensible” amount was fair to the other shareholders.
Tesla’s chairman of the board by Robyn Denholm according to the fact that it has not been possible to pay Musk the agreed remuneration for six years, “in the opinion of the board and many shareholders, it is fundamentally unfair.”
Even if the shareholders vote in favor of the payment, it does not automatically guarantee that Musk will receive the money. This is the opinion of a professor of law at Columbia University Eric Talley for Reuters. According to Talley, Musk should still file an appeal with the Delaware Supreme Court and overturn the previous court ruling that Musk controlled the compensation negotiations in his favor.
Musk is expected to appeal the decision later this year.
With the deal, Musk became the richest person in the world. In November, the financial magazines Forbes and Bloomberg estimated the value of Musk’s assets to be between 180 and 200 billion euros.
Musk’s remuneration is tied to performance targets, such as the value of Tesla shares. Musk does not receive a salary from the company.
Source: Reuters