Elon Musk has fought against the automakers, short sellers, and securities authorities in Detroit. The Tesla (TSLA. O) CEO will face battle in court the next week with a thrash metal drummer who seeks to have Musk’s $56 billion salary taken away.
Richard Tornetta filed a lawsuit in 2018, to go up against the richest man in the world in the trial. In what is known as a shareholder derivative case, Tornetta sued Musk and the Tesla board on behalf of the business. If successful, Musk’s 2018 stock grant package will be revoked, which will be in Tesla’s favour.
The contentious compensation plan permits Musk to purchase 1% of Tesla’s shares at a significant discount each time he meets increasing performance and financial goals; if not, he receives nothing.
In circumstances like Tornetta’s, the plaintiff does not pay the attorneys.
Tornetta is a plaintiff in a different lawsuit that will go to trial the following year and contests the sale of Pandora Media Inc to Sirius XM Holdings Inc. (SIRI.O). Without much success, legislators and judges have attempted for decades to persuade the biggest investors, like Vanguard, to lead shareholder class actions and derivative litigation like Tornetta’s.