Car company Tesla defended the billion-dollar bonus of more than $ 50 billion for CEO Elon Musk on Monday. According to board member Ira Ehrenpreis, this largest reward in American history was necessary to keep the well-known entrepreneur “involved” with the electric car manufacturer.
“We wanted Elon to be at the head of Tesla for a long time,” said Ehrenpreis, who spoke as a witness at the trial. He added that the level of remuneration had also been discussed with ten major Tesla shareholders. They would all have agreed.
It is expected that Musk himself will also speak in the high-profile case later this week. The CEO was already promised a package of stock options in 2018 if he could achieve certain objectives with Tesla. Since then, Tesla’s stock price has increased more than tenfold and the company was briefly worth more than $1 trillion.
According to calculations, Musk could collect up to $ 56 billion billion. The bonus could therefore be so large that Musk could recoup the entire $ 44 billion he recently invested in the acquisition of Twitter.
A small investor in Tesla thought the reward was excessive and filed a lawsuit. He also thinks it’s unfair that Musk was awarded the reward of a board that would actually be completely under his control. Yet the matter is not that simple. Musk’s lawyers have previously pointed out that the proposal was passed by a large majority of shareholders of the listed company.
Musk says he is overworked: “From morning to evening, seven days a week”
Trade watchdog US warns Twitter after chaos with ‘verification ticks’ and employees leave
THE DEBATE OF THE DAY. Is teleworking still appropriate now that the worst of corona seems to be behind us? This is what you say
ALSO WATCH. Elon Musk defends the mass layoffs at Twitter: “Unfortunately, when the company loses more than $ 4 million a day, there is no choice”
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss a thing of the stars.