This story is not new. Indeed, in 2018, the Tesla brand gave its CEO Sulphurous Elon Muskcompensation plan 56 billion dollars. However, things did not go as planned Mr. Musk.

A plan that was quickly challenged!

Compensation plan 56 billion dollars, for some it is the biggest compensation plan for a business manager. If the brand brought this plan to its CEO, it would quickly raise eyebrows even within the company. Richard Tornetta, a drummer in a metal band, but also and above all, shareholder of the American brandfiled a complaint against this plan and asked the courts to overturn it.
Not so long ago, the judge Kethakin McCormick court in Delaware, entered judgment and entered judgment in its favor Richard Thornetta by canceling this compensation plan. Given the elements at her disposal, the judge believed that the shareholders had received the information “misleading” of the board of directors and the compensation committee before the vote on this compensation plan takes place.
If the brand’s shareholders must have welcomed the news, they must have been quickly disappointed by this new information.

A bill of six billion?

Yes, but here it is, the story don’t stop there! Indeed, the lawyers responsible for canceling this compensation plan are now begging to be paid. And not quite a few, as the three law firms involved in this case are asking six billion dollars, a round sum. But it’s still a bit more complicated. Actually, the latter do not ask not a simple checkthey want pay with Tesla shares. Lawyers’ fees include reimbursement of incurred costs, i.e. 1.12 million dollarsand transmission 29.45 million Tesla shares ! Knowing that as of this writing, Tesla stock is trading at 200.86 USDit represents 5.91 billion dollars.
Here, too, there is a small sum demanded by the three law firms that handled the case. In a document submitted to Delaware Court of Chancerythe lawyers still admitted that these meetings took place unprecedented.

What’s next?

If the three law firms could get what they were asking for, they almost did 1% of the company. If you find that it is not much, tell yourself that this small percentage will lead them to 10 largest shareholders American brand.
Elon Musk did not take long to react. The latter considers this request quite simple “offender”. He also announced on his Twitter: “Lawyers who only harmed Tesla want $6 billion.”
For their part, law firms make excuses. The latter assess the size of the reward they require importantly, because the value of the profit Tesla received after the cancellation Musk’s compensation plan is massive. Simply put, they want to tie their personal benefit of Tesla’s earnings to this lawsuit. And obviously, when we talk in tens of billions of dollarsit is very good thing for three law firms.

If nothing else is done, one thing is certain: we haven’t heard the last of this story.

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