Musk Case Lays Blueprint for Companies to Safeguard Executive Pay ...Middle East

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Musk Case Lays Blueprint for Companies to Safeguard Executive Pay
The blockbuster decision rescinding Elon Musk’s nearly $56 billion compensation plan at Tesla Inc. relates to an extraordinary amount of consideration paid to a superstar, billionaire CEO. But the case also offers important lessons for boards and compensation committees beyond the specific context. In Tornetta v. Musk, the Delaware Court of Chancery issued a post-trial decision Jan. 30 ruling that the directors of Tesla breached their fiduciary duties when, in 2018, they adopted a $55.8 billion 10-year equity-based compensation plan for Musk, Tesla’s CEO. The plan was 250 times larger than the contemporaneous median peer compensation plan and over 33 times larger than the plan’s closest co

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