Tesla’s R$275 billion bonus to Elon Musk causes controversy and was blocked by US courts

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A judge in the State of Delaware, in the United States, annulled a salary bonus agreement granted to the billionaire in 2018. According to her, the amount is not fair to the other shareholders. Action against salary bonus to Elon Musk was filed by a shareholder who argued that it was excessive payment GETTY IMAGES A judge in the State of Delaware, in the United States, annulled an agreement for a salary bonus of US$55.8 billion (about R$275 billion) granted to Elon Musk in 2018 by the electric car company Tesla. The action was filed by a shareholder who argued that it was an excessive payment. Judge Kathaleen McCormick said the salary compensation to Musk is “an unimaginable amount” of money that is not fair to other shareholders. She decided that the agreement should be cancelled. Musk may appeal to the Delaware Supreme Court. In a post on X (formerly Twitter), a social platform owned by Musk, he wrote: “Never incorporate your company in the state of Delaware.” The pay deal, decided in 2018, was the largest ever in corporate history, and contributed to making Musk the richest person in the world. Bloomberg and Forbes estimated Musk’s net worth between US$198 billion (R$980 billion) and US$220 billion (R$1.089 tri), in November 2023. Also read: What the brain chip implanted by Elon’s company looks like Musk in a person Blue and black or white and gold? Almost 10 years later, the viral dress continues to generate controversy and is the subject of studies. Tesla’s package linked Musk’s compensation to performance goals, such as Tesla’s share price and profitability. The information is that he does not receive a salary from the company. During the week-long trial, lawyers argued that the agreement was made to ensure that Musk — according to them, one of the most dynamic businesspeople in the world — continues to dedicate himself to the company. But Judge McCormick said in her ruling that Tesla directors were “swept up in the rhetoric” surrounding Musk’s “superstar appeal.” Additionally, she said Musk had “extensive ties” with the Tesla employees tasked with negotiating the salary premium. She cited his 15-year relationship with compensation committee chairman Ira Ehrenpreis. She also stated that Musk also had business relationships, lasting more than 20 years, with another member of the compensation committee, Antonio Gracia. After the decision was released, Greg Varallo, lawyer for the Tesla shareholder who filed the lawsuit, Richard Tornetta, said it was a “good day for the good guys”, in an email reported by the Reuters news agency. “Given that the judge concluded that Musk is in control of the board, it is difficult to justify a transaction like this,” Brian Quinn, professor at Boston College Law School (USA), told the BBC. Tesla shares fell about 2.5% in New York. This year, they have already lost more than 20% of their value. Musk also posted on X: “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.” He then posted a poll asking his followers whether or not Tesla should “change its state of incorporation to Texas, where its physical headquarters are.” Brian Quinn stated that “this is a question for Tesla’s shareholders, not its Twitter followers.” In addition to being Tesla’s chief executive and largest shareholder, Musk also owns several other companies — including social media platform X, rocket company SpaceX and brain chip company Neuralink. After selling a large portion of his stake in Tesla to buy the X, Musk currently owns about 13% of the electric car maker. He recently said he wants to have a bigger stake in the company. Musk said he was concerned about Tesla’s investments in artificial intelligence (AI) technology. “I don’t feel comfortable making Tesla a leader in AI and robotics without having 25% voting control,” he said in a social media post. He said the current ownership structure makes Tesla vulnerable to a “takeover by dubious interests” and he wants more control over its direction. “Unless that’s the case, I would prefer to build products outside of Tesla,” Musk said. Behind the scenes, strategies and routine of those who make a living selling sex videos Almost 10 years later, a dress that went viral continues to generate controversy

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