Tesla Director & Former Executive Took the Stand Defending Elon Musk's $56B Pay Package

Tesla Director & Former Executive Took the Stand Defending Elon Musk's $56B Pay Package

A Tesla director and former executive defended Elon Musk's $56 billion payout package in court. The suing shareholder has claimed that the CEO dictated the terms of the deal in order to fund his dream of traveling to Mars.

The plaintiff Richard J. Tornetta is hoping to prove in court that Tesla CEO Elon Musk used his influence on the company's board of directors to develop its 2018 compensation package. In addition, he claims that Musk tricked investors into approving the package. The plaintiff only owned four shares when he sued in 2018.

The trial of the case began on November 14 at the Delaware Court of Chancery in Wilmington. On the first day, testimony was given by Ira Ehrenpreis, a Tesla director in 2007, who was forced to explain why the board did not demand that Musk dedicate himself to the company full-time. She explained that achieving the set goals did not require him to put in a certain number of hours at work. Musk and the board of directors were focused on achieving goals, not on time spent at Tesla.

“We never had the kind of relationship with Elon where he was punching the clock,” said Ehrenpreis, who chaired the committee that developed the pay package, according to Reuters.

While Musk is also the CEO of the rocket company SpaceX and founder of the tunneling venture The Boring Co, he always devotes his time to what is needed at a particular time. For example, at the time when Tesla launched and increased production of Model 3, Musk literally lived for three years in factories in Fremont and Nevada, sleeping either on the roof, or under the table in the office, or on the floor in the middle of the production hall. This is the best demonstration of his dedication to the cause because Tesla is his brainchild.

Tornetta demanded that Musk's $56 billion compensation package that the CEO earned for making the company successful be canceled. Musk got the company through its most critical times, keeping it from going bankrupt—a very real threat that some legacy automakers also faced. Musk’s high success with the company continued, boosting its market capitalization and leading to a tenfold rise in its share price.

© 2022, Eva Fox | Tesmanian. All rights reserved.


We appreciate your readership! Please share your thoughts in the comment section below.

Legal Disclaimer --

This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

Follow me on X


Tesla Is a 'minor miracle' in the American Auto Industry, Says Charlie Munger
SpaceX achieves manufacturing 200th Raptor V2 engine as it prepares for Starship's debut orbital flight

Tesla Accessories