Musk’s $55 Billion Tesla Pay Package Spoiled by Conflicts of Interest, Investor Claims

The decision by Tesla Inc. directors to authorize a $55 billion pay package for Chief Executive Officer Elon Musk in 2018 was marred with conflicts of interest and improper disclosures about the performance benchmarks he’d be held to, a disgruntled investor argued in a court filing.

Musk, the world’s richest person and Tesla’s largest shareholder, must testify before a Delaware judge at a Nov. 14 trial over the claim by investor Richard Tornetta, who says the billionaire engineered the windfall pay deal by pushing it through a “supine board.” The CEO was awarded stock options that vest over 10 years when certain performance milestones are achieved.