A Delaware judge has thrown out $55 billion in social bonus payments to Elon Musk.
In 2018, Tesla shareholders drew up a simple plan that included paying out a massive $55.8 billion over 10 years to determine production and financial performance. Musk does not receive a regular salary.
Tesla shareholder Richard Tornetta sued Tesla after the plan was approved. The lawsuit claims the consequences are “beyond reasonable.” In addition, the investor accused Musk of undue influence on the decision.
Defendants have proven that Musk was motivated by ambitious criminals and that Tesla desperately needed Musk to succeed in the next stage of its development, but these facts do not justify the creditors’ compensation plans in the history of public companies.
Judge Katelyn McCormick
Tesla may appeal this decision. But if this does not change, then Musk will lose options on 303 million Tesla shares, although at the moment it is unclear how this will be implemented.
Now this package is valued not at $55.8 billion, but at $51.1 billion. This is exactly how much Musk can lose. If this happens, his fortune will fall from $205 billion to $154 billion.
Thus, he will cease to be the richest man in the world. In the Bloomberg billionaires ranking, he dropped to third place, just behind Bernard Arnault and Jeff Bezos.
In addition, Tesla shares will develop a new action plan for Musk, which will take into account past results, and shareholders will have to approve it.
Musk commented on the court decision tweet: “Never register your company in Delaware.” [The Verge]
Source: Iphones RU
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