Musk to stand trial: accused of being ineligible for Tesla’s $56 billion pay

Musk will reportedly appear in court on Nov. 14 to defend whether he deserves Tesla's massive $56 billion paycheck, refuting shareholder allegations that he does not need to work full time to earn an unjust income.

Tesla shareholder Tony Towers is seeking to annul, the company's 2018 pay deal with Musk, which he says the board set performance goals for the latter that could be easily achieved, and the reason Musk finalized the pay plan was to fund his dream of colonizing Mars, the report said.

In response to the accusation, Tesla countered that the compensation package delivered a 10-fold increase in value to shareholders.

Tonita's lawyers argued that the 2018 compensation package failed to deliver, leaving Musk to focus on Tesla's stated goals, which they described as a "part-time CEO.

But Tesla argues that the compensation package does not require Musk to travel to the company every day or stay there for a specific amount of time, but rather to achieve "bold goals" that will make Musk himself rich and help shareholders like Tonita get rich.

It is understood that Musk's astronomical compensation package allows Musk to buy 1% of Tesla's stock at a significant discount every time he achieves performance and financial goals. Instead, Musk was not paid anything.

And later, Tesla's market capitalization soared from $50 billion to $650 billion, and also achieved 11 of its 12 predetermined goals.

Statistics show that the initial value of Musk's compensation package was about $50 billion, but so far it has brought him a fortune of $200 billion. The stock incentive package is higher than the combined pay of the 200 highest paid CEOs last year, more than six times the latter, and is considered the highest "salary" in the world.

The case is scheduled to go to trial on November 14 and will be decided by Delaware Court of Chancery Justice Catherine McCormick, according to the report.