HomeStock MarketAttorneys seeking $6 billion fee for canceling Elon Musk's excessive pay.

Attorneys seeking $6 billion fee for canceling Elon Musk’s excessive pay.

The Battle Over Elon Musk’s Compensation

Lawyers Seek Record-Breaking $6 Billion Fee

The legal team that successfully challenged Elon Musk’s $56 billion compensation package is now seeking an astronomical $6 billion fee, payable in Tesla stock. This request, deemed “unprecedented in terms of absolute size,” has stirred controversy.

Musk’s Strong Reaction

Elon Musk swiftly condemned the fee request as “criminal,” expressing disbelief that the lawyers, in his view, who caused harm to Tesla, are demanding such a substantial amount. Neither Tesla nor Musk’s attorney has responded publicly to this development.

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The Legal Battle Unfolds

Following a lawsuit filed by shareholder Richard Tornetta in 2018, a Delaware judge invalidated Musk’s pay package earlier this year. The legal team argues that Tesla should foot the bill for their services, as the company stands to benefit from the return of Musk’s excessive compensation.

The Fee Structure

The lawyers propose a fee structure that ties their reward directly to the benefits accrued by Tesla from the pay package’s reversal. This arrangement, they assert, avoids tapping into Tesla’s finances and even offers tax benefits to the company.

Judicial Scrutiny

Judge Kathaleen McCormick, overseeing the case, criticized Musk’s compensation as “unfathomable.” The court will ultimately decide on the legality and fairness of the proposed $6 billion fee.

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Legal Precedents and Arguments

The legal team justifies their fee request, citing past cases where substantial fees were awarded in shareholder disputes. They also underscore the efforts and risks involved in litigating cases of such magnitude.

Musk’s Compensation Package

Musk’s controversial compensation package comprised stock options and specific holding requirements. The lawyers are now advocating for unrestricted stock as part of their fee.

The Legal Team

Comprising three prominent law firms, the legal team behind the challenge to Musk’s compensation package aims for a landmark fee that could set a new precedent in legal circles.

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