Web Desik.
Elon Musk, one of the wealthiest individuals in the world and CEO of Tesla, has made headlines once again, but this time, it’s about his compensation. Do you know how much the Tesla CEO aims to earn in the near future?
It might be hard to believe, but Musk is seeking a staggering $56 billion as part of a financial package for his role as Tesla’s CEO. However, in January 2024, a Delaware court blocked Tesla from granting this enormous sum.
This week, the same Delaware court upheld its previous decision, ruling that the financial package should not be implemented. For context, Tesla had initially approved this controversial package back in 2018.
The legal troubles began when Tesla investor Richard Tornetta filed a lawsuit in 2018, claiming Musk personally designed his compensation plan in violation of corporate governance rules. Tornetta also alleged that Tesla’s board members intentionally withheld key details from shareholders to secure approval of the deal.
In January 2024, the court found that Tesla’s board had mishandled the preparation of Musk’s compensation plan. The judge ordered Musk’s legal team to work with the court to ensure compliance with the ruling.
Despite these legal setbacks, Tesla attempted to gain shareholder approval for the package again during its annual meeting in June 2024. To avoid further legal challenges, Tesla shareholders also approved relocating the company’s headquarters from Delaware to Texas.
However, the Delaware court has once again invalidated the package, marking a significant blow for Tesla and Elon Musk.
Interestingly, Musk’s wealth has seen a substantial increase in recent weeks, despite these challenges. Since the U.S. presidential elections and Donald Trump’s victory, Musk’s net worth has surged by over $43 billion.
Elon Musk, who owns 13% of Tesla shares, notably does not take a monthly salary from the company.
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