Lawyers Seeking $6 Billion Fee for Voiding Elon Musk's Tesla Pay Package
Lawyers who successfully voided Elon Musk's $56 billion Tesla compensation package are now seeking a record $6 billion legal fee payable in the company's stock.
Request for $6 Billion Legal Fee
The lawyers who voided Elon Musk's $56 billion Tesla compensation package as being excessive are seeking a record $6 billion legal fee payable in the company's stock.
The three law firms involved acknowledged that the requested fee is unprecedented in terms of its absolute size. The fee amounts to an hourly rate of $288,888 for representing Tesla shareholder Richard Tornetta in the lawsuit to rescind the massive compensation package.
Delaware Judge Voided Musk's Pay Package
A Delaware judge recently voided Musk's $56 billion pay package due to the lack of full disclosure regarding his close ties with the directors who approved the deal. The judge also found that the performance targets for the package were easier for Musk to meet than initially acknowledged.
The $56 billion compensation package was the largest ever provided to the CEO of a publicly traded U.S. company. However, Musk was not guaranteed any salary.
Tesla CEO Slams Lawyers' Request
Elon Musk responded to the lawyers' $6 billion fee request in a post on X, formerly Twitter, calling it 'criminal.'
Musk criticized the lawyers, accusing them of causing damage to Tesla with their actions. He expressed his disbelief at the large fee they are seeking.
