- A US judge declared that Tesla CEO Elon Musk's $1 billion salary was invalid.
- According to the plaintiff, Musk “unfairly enriched himself” with money.
- The ruling can continue.
In 2018, Elon Musk received a pay package from electric car manufacturer Tesla that is now worth more than $50 billion. Now he has to worry about that money because: Kathleen McCormick, a judge in the US state of Delaware, has ruled that the $1 billion salary package is invalid. “The ruling is in favor of the plaintiff,” McCormick said.
Musk and Tesla officials were unable to independently and fairly prove that the pay package was awarded. According to American media, this package is said to have contributed to Elon Musk becoming one of the richest people in the world.
Musk “unjustly enriched himself”
Shareholder Richard Tornetta filed the lawsuit against Musk, Tesla, and several Tesla board members. Tornita accused Musk of “unjust enrichment.” His lawyers claim, for example, that the package, which includes stock options, is excessive. Elon Musk himself dictated this to Tesla's board of directors. And: The decision-makers there were not independent, but rather they were close to Musk.
Never register your business in Delaware.
Musk himself initially reacted tersely to his SMS service X, writing: “Never register your company in Delaware.” The US state on the East Coast is a tax haven for many US companies.
The judgment can be transferred to the next court.
