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Tesla’s $50 billion question comes down to the wire
The outcome may determine the future of the company.
Last January, a Delaware court judge invalidated Musk’s pay package, first approved in 2018, arguing that the process was flawed because shareholders lacked insight into its development and that Tesla’s board was too chummy with its already very rich CEO. “If I were a shareholder, I would be asking myself for starters whether the $50 billion Elon Musk is requesting in exchange for his full attention would in fact secure it,” said Gregory Shill, a professor at the University of Iowa College of Law, “or if, as some colleagues have argued, it would be unlikely to.” In a letter to shareholders last week, Tesla board chair Robyn Denholm argued that for Musk to receive his historic compensation, he needed to hit certain operational thresholds and boost the company’s stock and valuation — and he did.
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