Featured Image Credit: Chip Somodevilla / Staff / Getty
Tesla CEO Elon Musk has begun an appeal process to restore the $56,000,000,000 pay package from the electric car company that he claims was denied in a 'legal error'.
Despite being undeniably the richest man in the world, Elon Musk continues his crusade for more money by pushing for an 'unfathomable' pay package from Tesla that he claims he is rightfully owed.
Awarded all the way back in 2018, this particular pay package resulted in major growth for the electric car manufacturer, as per Reuters, but was ordered to be rescinded by Chancellor Kathaleen McCormick through Delaware law proceedings.
Advert
Chancellor McCormick indicated that the staggering pay package was "unfathomable" and unfair to shareholders, as directors were 'beholden' to Musk as CEO, alongside accusations that Tesla withheld key information from investors before they successfully voted to approve the pay package.
Musk has now launched his own appeal to McCormick's decision, claiming instead that multiple legal errors were made in the application of the 'entire fairness' legal standard.
His legal representatives argue that Chancellor McCormick incorrectly determined that the Tesla directors that approved the pay package were conflicted in their business efforts, and that her assessment of the company's failure to disclose information was a fault.
What remains critical about this particular pay package is it's relevance to the current stock price of Tesla, even with a rapidly falling valuation over the past few weeks despite a push of support from President Trump.
The pay package, if successfully awarded, allows Musk to purchase roughly 303 million stock options in the company at around $23 each, which is essentially 10% of the most recent $230.58 closing price on Tuesday (March 11) night, and pales in comparison to the highs of around $492.77 at the end of last year.
Musk's purchase price if awarded these stocks would be around $6,969,000,000 - which is around just 2.2% of his total current net worth - but if he sold it at that $230.58 closing price he'd earn himself $69,865,740,000, which would boost his net worth by 20%.
Conversely, Musk will likely feel as if he's lost significant value due to the fact that Tesla is significantly lower than it's all-time high on the stock market, and if he had indeed held this pay packet at the $492.77 evaluation then his net worth would have almost doubled, increasing by $149,309,310,000.
This is quite a different approach compared to key rival Sam Altman, who currently holds no stock options for OpenAI and only receives a $76,000 yearly wage from the company, and in addition Musk has threatened to move his efforts elsewhere and procure development outside of Tesla if he cannot increase his stake in the company.
