An American court has decided not to pay multi-billion dollar compensation from Tesla.
A Delaware court in the United States has voided an agreement to pay Tesla owner Elon Musk $55.8 billion following a claim by one of the company’s shareholders. This was reported by the BBC on Wednesday, January 31.
Judge Catherine McCormick called the payout an “exorbitant amount” that was unfair to shareholders.
Tesla executives argued that the agreement was made to ensure that Musk “continues to devote his attention to the company.”
But the judge ruled that the lawyers of Tesla and Musk failed to prove that the decision of the shareholders was completely justified and that the reward itself was agreed upon by the directors of Tesla who were “led by the rhetoric” surrounding the “superstar” of Musk.
In turn, Musk commented on the court decision with advice: “Do not register your company in the state of Delaware.” The entrepreneur then posted a poll asking followers whether Tesla should change its state of registration to Texas, where its physical headquarters are located.
The compensation agreement between Musk and Tesla is the largest in the history of the world company. Finished in 2018, this is why last year the CEO of the company was made the richest person on the planet. According to the agreement, Musk should receive money if the company’s market capitalization grows by $50 billion. Tesla hits its 2023 revenue target.
We remind you that the US Department of Transportation recently fined Neuralink, a company owned by Musk, for violating the rules on the movement of hazardous materials.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.