Tesla Motors on Monday defended a $1 billion bounty of more than $50 billion for CEO Elon Musk. According to board member Ira Ehrenpress, this is the biggest bonus in American history that was necessary to keep the well-known businessman “involved” with the electric car maker.
“We wanted Elon to be at the helm of Tesla for a long time,” said Ehrenpress, who spoke as a witness at the trial. He added that the bonus amount was also discussed with ten major Tesla shareholders. They had all agreed.
Musk himself is also expected to speak on the high-profile case later this week. The CEO was promised a package of stock options in 2018 if he can achieve certain goals with Tesla. Since then, Tesla’s stock price has risen more than tenfold and the company was briefly valued at more than $1,000 billion.
According to calculations, Musk’s turnover could reach 56 billion dollars. So the reward could be so high that Musk can get back the entire $44 billion he recently invested in. Twitter takeover.
A small investor in Tesla thought the bonus was excessive and was sued. He also finds it unfair for Musk to be given a board bonus that would in fact be completely under his control. However, it is not so simple. Musk’s lawyers previously noted that the proposal was passed by a large majority of shareholders in the publicly traded company.
Watch too. Elon Musk defends mass layoffs on Twitter: “Unfortunately, there is no choice when the company loses more than $4 million a day”
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