The 2018 Tesla pay package grants stock options as the company meets escalating financial goals, which the company said would incentivize his continued leadership. His stated ambitions include colonizing Mars. In addition to Twitter, the multitasking entrepreneur is already chairman of rocket company SpaceX, founder of tunneling venture The Boring Company and owns Neuralink, a brain-chip startup. Tesla’s stock has fallen more than 20% since Musk disclosed he had taken a 9% stake in Twitter on April 4, partly on concerns he was distracted from the electric vehicle maker’s supply chain problems. In court papers, the defendants said the plan was properly crafted by independent directors, approved by stockholders and has generated unprecedented gains for investors. Musk and Tesla did not respond to requests for comment.
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The first line, it says ‘you’re going to be a full-time CEO and devote substantially full time to the business and affairs of the company.’ That’s standard,” said Greg Varallo of Bernstein Litowitz Berger & Grossmann, the firm that is leading the case against the pay deal.
The lawsuit alleges Musk created the 10-year package and Tesla’s board rubber-stamped it in 2018 without requiring the celebrity CEO devote himself to the electric vehicle maker.
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