Elon Musk Heads to Court to Defend His Billions in Tesla Pay

Tesla has made Elon Musk a billionaire many times over by paying him generously in shares for his work as chief executive of the electric carmaker.

On Wednesday, Mr. Musk is expected in court to defend that compensation, much of which derives from a record-setting pay deal he struck in 2018 with Tesla’s board of directors. The package awarded Mr. Musk options that gave him the right to acquire nearly $50 billion of the company’s stock, helping to make him the world’s richest man. Compensation analysts consider his pay to be stunning even by the dizzying standards of what many chief executives earn in the United States.

In the years since shareholders voted in favor of the pay deal, Mr. Musk has received most of the stock included in the package after meeting goals for revenue, profits and share-price gains laid out in the deal.

In a case being tried in the Delaware Court of Chancery, a shareholder is contending that Tesla’s board did not act independently of Mr. Musk when…

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This article was written by Peter Eavis, Jack Ewing and Isabella Simonetti and originally published on www.nytimes.com