The multi-billion dollar compensation package of Elon Musk must be withdrawn and Tesla Inc’s board must be renovated to better safeguard sponsors in the electronic car firm. This news is as per a law suit filed last week by a shareholder.
The lawsuit blamed Musk (chairman and chief executive officer of the company) and the board of corporate waste of unfair enrichment.
The lawsuit is looking for a class action suit.
Tesla claimed to the media in an interview that the lawsuit looks to take the authority from our stakeholders and as an alternative offer it to plaintiff lawyers. We will answer in view of that.
Musk got the support of the shareholders of the company in March for a package that Tesla expected to be $2.6 Billion in worth.
An analyst from Morgan Stanley predicted the package might be almost $70 Billion in worth if the firm carries on growing swiftly. While the reward of the pay package turned off rumors that Musk may be aiming to quit, it was also condemned for its exceptional size.
Glass Lewis and ISS, the Proxy advisory services, both had suggested the stakeholders to discard the package.
“The new compensation plan for E. Musk is so huge that it dwarfs the pay package of every CEO of any other public firm,” claimed the grievance by Richard Tornetta that was revealed in Court of Chancery at Delaware last week.
A statement by Tesla noted that Musk receives nothing unless the firm’s market capitalization increases by 2 times and carries on to elevate until it turns into one of the most valuable firms in the world.
Much of the grievance defining the how the pay package is unjust was edited by the media.
On a similar note, Eric Schmidt (former CEO of Google) has claimed that SpaceX and Tesla Founder Elon Musk’s uncertainty about AI (Artificial Intelligence) and its affect on human beings is precisely incorrect.