Board of Tesla Inc. (TSLA – Get Report) must be brought to court to defend a huge payday deal by CEO Elon Musk, a Delaware judge, according to a published report Friday.
The decision comes in a lawsuit filed by a Tesla shareholder, who disputes that the package unfairly enriches Musk at the expense of shareholders, Reuters reported.
The 2018 shareholder-approved transaction does not involve payment or bonuses, instead of tying large tranches of shares to shares of the company's market valuation, whether or not it ever makes a profit.
The company put the value of the deal at $ 2.6 billion at the time it was approved, but some analysts said it could reach $ 70 billion if the company grows fast enough, according to Tesla's shares
$ 5.98, or 2.4%, to $ 240.62 on Friday. The company's current market capacity is just under $ 44 billion.