Elon Musk Loses $56 Billion Tesla Pay Package Thanks Metal Drummer’s Lawsuit
Elon Musk is still richer than anyone you will ever know, but his metaphorical wallet is considerably lighter today because of a lawsuit from a former metal drummer. Richard Tornetta played in the Philadelphia thrash band Dawn Of Correction from 2005 to their 2009 breakup. In 2018, Tornetta owned nine shares in Tesla, and he sued Musk and Tesla in a Delaware court, filing what’s known as a shareholder derivative lawsuit on behalf of the company. Tornetta accused Musk of controlling the Tesla board of directors that approved his exorbitant $56 billion pay package. On Tuesday, a judge agreed, and it cost Musk that $56 billion.
As Reuters reports, the $56 billion judgment is one of the largest in US history. Chancellor Kathaleen McCormick found that the approval process for Musk’s pay package was “deeply flawed,” and the company will have to propose an alternative pay package. Musk can and presumably will appeal. The judgment could have serious implications for the way other companies pay obscene salaries and bonuses to their executives. You might even say that this could be a new dawn of correction.
Richard Tornetta isn’t suddenly $56 billion richer. Instead, he benefits as the shareholder of a company that was spending its money wastefully and irresponsibly. Here’s a video of Dawn Of Correction playing at CBGB back in the day.