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

Beijing time on the morning of February 22, it is reported that the lawyer for Tesla shareholders said in the closing statement of Musk's compensation case that the company's board of directors did not truthfully disclose the details of the $55 billion compensation package they worked out for CEO Elon Musk (Elon Musk).

On Tuesday, local time, lawyer Greg Varallo (Greg Varallo) said in the Delaware equity court that the information disclosed by board members in the agency documents about the pay package was "half-true". And this plan will become the highest CEO salary in the United States. Justice Catherine St. McCornick (Kathaleen St. J. McCormick) will rule on the case without a jury.

Vararo told McCornick that the incomplete document forced investors to look for background information on the board conflicts that affected the plan and what performance goals Musk should achieve.

The case was initiated by Richard Tornetta, Tesla's shareholder, who accused the company's board of directors of failing to maintain independence in developing a new pay plan for Mr Musk based on outstanding stock options. If McCormick agrees with the investor's position, he will cancel the option and order Tesla's board of directors to reformulate a new compensation plan.

Musk testified in court in November last year that he had no influence on the pay plan and did not understand the specific calculation process. Although the testimony session ended in November last year, McCormick spent months receiving a few more briefs before his closing statement.

At the hearing on Tuesday, McCormick asked both sides to continue to submit briefings and said the ruling would not be made immediately.

The lawyer for the directors of Tesla countered that Mr Vararo's 26-page agency document on Musk's compensation was "detailed" and accurately described the "gains and losses" corresponding to the compensation plan.

Daniel Srifkin (Daniel Slifkin), a board attorney, told McCormick that the details that angry investors said were hidden by the board were "not important to ordinary investors". He said that many investors understand that Musk has to "achieve the goal" to get the full compensation.

Part-time CEO

Mr Srifkin said Tesla's valuation would increase by $50 billion when Mr Musk reached the target of the compensation plan, which would also benefit shareholders.

But Mr Vararo points out that in the past few years, Mr Musk has been Tesla's "part-time CEO", especially after he bought Twitter for $44 billion last year, so he should not get the highest CEO salary ever.

Vararo said that in addition to Twitter, Musk also invested a lot of time in his other startups, including private rocket company SpaceX, tunnel company Boring, brain-computer interface company Neuralink and so on. In addition, the distribution of the billionaire's energy was not disclosed in the agency documents.

Mr Musk admitted that he was hardly worried about Tesla's board's review of his pay proposal, according to court documents. Describing the details of the pay package in his pre-trial testimony, he said the process was "I negotiate with myself". The board pushed forward the pay plan for fear that Mr Musk would resign as Tesla CEO.

Mr. McCormick said Tuesday that Mr. Tonita's lawyers believed that finding a defect in the agency documents "would be a fatal blow" that would allow the judge to invalidate Mr. Musk's pay plan.

Mr Srifkin said Delaware's law did not require a perfect board process when setting executive pay, nor did it require the board to describe everything in detail when setting Mr Musk's pay.

Mr Srifkin said the position of Tesla's board of directors was that "no matter what the process is, the gains and losses of the plan are completely public", which is the key issue in this case.

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