Tesla seeks dismissal of suit challenging Musk pay package

DOVER, Del. – A Delaware judge is weighing whether to dismiss Tesla shareholders’ complaints over a compensation plan that could net CEO Elon Musk more than $50 billion over the next decade.

The shareholder lawsuit says the automaker’s pay plan should be subject to court review because it was negotiated by a compensation committee and approved by a board whose members had conflicts because of personal and professional ties to Musk.

Under the plan, Musk could reap billions if the California-based company hits ambitious market capitalization and operational milestones.

A Tesla attorney argued Thursday that just because the compensation plan is unusual does not make it unfair, especially when it received more than 70 per cent of votes cast at a special stockholder meeting.