Lawsuit Seeks Tesla Board’s Shakeup

Elon Musk’s multi-billion dollar compensation package should be rescinded and the board of Tesla Inc should be overhauled to better protect investors in the electronic car company, according to a lawsuit filed by a shareholder on Thursday. The lawsuit accused the board of corporate waste and Musk, the company’s chief executive officer and chairman, of unjust enrichment, Reuters reported. The lawsuit is seeking class action status. Tesla said in a statement that the lawsuit “seeks to take the power from our shareholders and instead give it to plaintiffs lawyers. We will respond accordingly.” Musk received the support of the company’s shareholders in March for a package that Tesla estimated to be worth $2.6 billion. A Morgan Stanley analyst estimated the package could be worth up to $70 billion if the company continues to grow quickly. While the award of the pay package cooled speculation that Musk might be planning to quit, it was also criticized for its unprecedented size. Proxy advisory services ISS and Glass Lewis both had recommended shareholders reject the package.