Shulou(Shulou.com)11/24 Report--

Beijing, Oct. 28 (Xinhua) Tesla awarded CEO Elon Musk (Elon Musk) a compensation package worth more than $50 billion (360 billion yuan) in 2018, sparking investor lawsuits. Mr Musk's lawyer defended this week that Mr Musk was able to get such a high pay package because he was no ordinary CEO.

Tesla investor Richard Richard Tornetta took Musk to court in June 2018, and the lawsuit will begin on November 14 this year. Tonetta believes that Tesla and Musk violated their fiduciary obligations and paid Musk "beyond the limits of reasonable judgment".

Mr Musk's lawyer said Tesla decided to give him a salary package of more than $50 billion because no one could soar the value of the electric carmaker like Mr Musk.

Specifically, the program awarded Musk 12 batches of stock options for a period of 10 years, which belonged when Tesla reached a specific goal. For each milestone reached, Mr Musk received shares equivalent to 1 per cent of the shares outstanding at the time of the grant. Mr Musk's lawyer said in court filings that since then the company's market capitalization had soared from $53 billion to more than $690bn, exceeding those targets.

"the 2018 compensation package was designed for Musk," lawyer Musk said in a trial plea filed on Tuesday. "this is not an ordinary compensation package designed and approved by the board of directors. It is not compensating ordinary executives who supervise the day-to-day operations of a mature company. This is because Musk is no ordinary CEO."

Mr. Musk's lawyer said in the 92-page document that Mr. Musk's pay package was to ensure that he focused on Tesla. Due to the uncertainty of Tesla's survival at that time, the compensation package was very similar to Musk as an asset of Tesla, "a high-return venture capital investment in him."

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