Tesla shareholders approve CEO Elon Musk’s $45bn pay package
Why was the original payment package for Elon Musk, valued at around $56 billion, nullified by a Delaware judge in January?
The original payment package for Elon Musk, valued at around $56 billion, was nullified by a Delaware judge in January because the judge found that Tesla's board could not be considered independent from Musk's influence and that the dollar figure was reached through an illegitimate process. The judge ruled that the board was rife with personal conflicts and stacked with Musk's close allies, making the process of determining Musk's payment "deeply flawed."
What were Judge Kathaleen McCormick's criticisms of the process used by Tesla’s board to determine Musk’s original payment?
Judge Kathaleen McCormick criticized the process used by Tesla's board to determine Musk's original payment as "deeply flawed." She found that the board was rife with personal conflicts and stacked with Musk's close allies, such as his former divorce attorney. The judge also ruled that Tesla's board could not be considered independent from Musk's influence and reached the dollar figure through an illegitimate process.
What was the value of the pay deal approved by Tesla shareholders for CEO Elon Musk?
Tesla shareholders approved a pay deal for CEO Elon Musk valued at $45 billion. This comes after a previous pay package, worth around $56 billion, was nullified by a Delaware judge in January. The new pay package is structured as 12 different tranches of stock options, with Musk receiving each tranche when the company hits certain revenue and market targets.