“They have granted themselves millions in excessive compensation and are poised to continue this unrelenting avarice into the indefinite future,” the pension fund stated in the lawsuit.
The pension fund wants to make the directors pay back the company and to find out how much excessive compensation was awarded.
This isn’t the first time Musk’s pay package has come in a legal tangle. In 2018, a lawsuit was filed against his compensation structure.
A report by CNBC in May revealed that Musk earned a payout of $775 million. According to a report by CNBC, the first of such payouts which was worth a massive $775 million. The report which cited Tesla’s filing with the Securities and Exchange Commission (SEC) confirmed that Musk’s first tranche of incentive payout was handed out. The tranche included about 1.7 million Tesla shares that — based on the company’s current market value — are worth $775 million.
Musk got the $775 million payout as Tesla’s market capitalisation has been at $100 billion on “a 30-day and six-month trailing average,”
A report by Fortune had earlier calculated what targets Musk needs to meet in order to land huge windfalls. Musk, according to Fortune, has a 12-level compensation metric and needs to first increase Tesla’s cap to $100 billion. The report also states that if — and it’s a big if — Tesla’s market value does reach $650 billion by 2028 then Musk could earn more than $50 billion.
As for the latest case, the Bloomberg report states that it is expected to go to trial sometime in October 2021.