Home / Business / Elon Musk, CEO of Tesla, receives an initial performance-related payout of $ 700 million

Elon Musk, CEO of Tesla, receives an initial performance-related payout of $ 700 million



The shareholders already approved Tesla’s compensation plan in 2018. In its submission, the company wrote that the current compensation programs “reflect [its] Startup Origins ”and intends to assess them when circumstances require and their needs change. Tesla also explained:

“We believe that incentives for executives should promote our company’s success and motivate them to pursue corporate goals. We have focused on structuring compensation incentives to reward clear, easily measurable performance targets that align their incentives closely with the long-term interests of our shareholders. “

However, at least one shareholder is not satisfied with the way Tesla rewards its executives. Richard Tornetta sued the company for his compensation plan and accused the board of directors of violating his fiduciary duty by approving a package that wrongly enriched the company̵

7;s managing director. Last September, a Delaware judge ruled that Tesla’s board of directors had to defend Musk’s billion-dollar compensation plan.


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