Billionaire Elon Musk will be appearing in a Delaware court on Wednesday in a lawsuit regarding his $50 billion pay package as Tesla CEO. The lawsuit was launched by Tesla shareholder Richard Tornetta who said that the package was approved by the board of directors without any due diligence. The complaint also said that Musk and the company directors have failed to deliver on their promises in spite of securing a mammoth pay package for themselves recently.
AFP reported that the court filing claimed that Musk earned around $52.4 billion from his stock options in Tesla over the last two years. Originally, the valuation was somewhere around $56 billion.
Musk will be appearing in the court after depositions from several directors in Tesla. Incidentally, this is the same Delaware court where Musk faced a lawsuit regarding the Twitter takeover. The trial will also be presided by Judge Kathaleen McCormick who was also in charge of the Twitter case.
Ira Ehrenpreis, head of the compensation committee on Tesla’s board of directors, was the first person who appeared in the trial. On Monday, she told the court that the board of directors had multiple discussions before agreeing on the mega pay package for Musk as the company CEO.
The other part of the accusations included in the court filing pointed towards the 22 per cent of the company owned by Musk and how that placed him in a place of power over the other company directors.