Hyperdrive

Tesla Board Misrepresented Musk’s $55 Billion Pay Package, Judge Told

Tesla’s proxy disclosures flawed, lawyer for shareholder says
Firm’ lawyer counters plan’s ‘give and get’ properly disclosed

Elon Musk
Photographer: Marlena Sloss/Bloomberg

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By Jef Feeley

February 21, 2023 at 10:06 PM UTC

This article is for subscribers only.

Tesla Inc. directors misrepresented a $55 billion pay package they recommended for Chief Executive Officer Elon Musk, a lawyer for shareholders said in closing trial arguments in a suit challenging Musk’s compensation.

Board members filled proxy disclosures with “half-truths” about the package, which would be the largest-ever awarded to a CEO, the lawyer, Greg Varallo, said Tuesday in Delaware Chancery Court. Chancery Judge Kathaleen St. J. McCormick will decide the case without a jury.