Tesla CEO Elon Musk's $56 billion pay package approved, but there is a catch

According to experts, Musk may also face new lawsuits over the package. In the report, Boston College Law School professor Brian Quinn is quoted as saying, "The issue is not yet settled." He said that the Delaware judge will closely examine the vote. And Tesla will have to demonstrate that the process was neither intimidated nor improperly influenced by Musk.

The judge criticized Tesla's board, saying that it is "subservient" to Musk. Saying that the plan was proposed by a board that had close personal and financial ties with the top executive. Which led to a conflict of interest.

Elon Musk also received 303 million options to purchase Tesla shares at a discount to their market value at the time of the grant as part of his incentive package.

valued at $51 billion at first. This is the possible profit Musk could earn in the event that Tesla's stock price increases significantly. Since then, a decline in the price of Tesla's shares has caused the package's estimated worth to plummet to $48.3 billion.

Since the company's brief ascent to a $10 trillion valuation in late 2021, Tesla's shares have dropped by more than 50%.