Elon Musk’s $56 Billion Pay Package Faces Legal Challenge in Court
The $56 billion pay package, which was approved by Tesla’s board in 2018, allows Musk to buy 1% of Tesla’s stock at a deep discount each time the company meets certain performance and financial targets
Elon Musk is a polarizing figure in the business world. He’s known for his bold statements, disruptive ideas, and outlandish behavior. But his latest controversy involves a massive pay package that he designed for himself at Tesla, which is currently being challenged in court.
The $56 billion pay package, which was approved by Tesla’s board in 2018, allows Musk to buy 1% of Tesla’s stock at a deep discount each time the company meets certain performance and financial targets.
This has led to accusations that Musk coerced compliant directors into providing a package of his design, which is many times larger than the combined pay of the next 200 highest-paid CEOs. It contributes to Musk’s fortune, the world’s second largest.
The legal challenge, brought by small Tesla investor Richard Tornetta, argues that the pay package improperly subsidized Musk’s dream of one day traveling to Mars. Tornetta believes that the Tesla board had a duty to offer a smaller pay package or look for another CEO and they should have required Musk to work full-time at Tesla instead of allowing him to focus on other projects, like running Twitter.
During the five-day trial in November, Investors King understands that Musk testified about the origins of the pay package and whether its performance goals were difficult to achieve and accurately described to investors.
Musk admitted that his pay package provided funds he would use to finance interplanetary travel. “It’s a way to get humanity to Mars,” he testified. “So Tesla can assist in potentially achieving that.”
Tesla has hit 11 of the 12 targets as its value ballooned to briefly top $1 trillion in 2021 from $50 billion when the package was negotiated. Musk’s lawyers argue that the pay plan benefited shareholders by increasing the value of their stock 10 times.
The outcome of this legal challenge will have significant implications for Tesla and for Musk. Chancellor Kathaleen McCormick of Delaware’s Court of Chancery must determine if Musk, who owned 22% of Tesla stock in 2018, controlled the company through board ties and his personality. If the court rules against Musk, some or all of the pay package could be rescinded, and Musk’s grip on Tesla could be weakened.
Aliko Dangote, Other Africans Top Forbes’ Black Billionaires List Ahead of Americans
Nigerian magnate and CEO of Dangote Group, Aliko Dangote has maintained his position as the richest black man in the world, says the recent Forbes Billionaires list.
With a $13.5 billion net worth, Aliko Dangote has remained top on the list and consistent for the past 12 years.
However, the only female billionaire in Nigeria, Folorunsho Alakija didn’t make the latest top black Billionaires list.
The only female included in the list was America’s talk show host, Oprah Winfrey, one of the world’s wealthiest black women.
Investors King understands that the list of black billionaires in the world has been low as there is a lingering wealth gap between the rich whites and blacks for years even at the face of eradicating racial inequality.
Forbes penned in its Black Billionaires list which is majorly dominated by Africans, three Nigerian moguls.
Those on the list are Johann Rupert, a South African businessman and owner of luxury goods firm, Richemont with a $10.7 billion net worth. He is Africa’s second richest man.
Next on the list is an American billionaire and CEO of Vista Equity Partners, a private firm that deals in software firms, Robert F. Smith with $8 billion.
Nigeria’s Abdulsamad Rabiu, the Chairman of BUA Group into the production of cement, sugar and food items and closest rival of Dangote is on the list with a $7.6 billion net worth.
Also, Nassef Sawiris, an Egyptian billionaire business mogul who owns Orascom Construction, an engineering firm in the Middle East and Africa. With a net worth of $7.3 billion, his construction company is the largest in Africa operating in over 25 countries.
Another Nigerian included on the list is Mike Adenuga with $6.3 billion. He is a telecoms and oil mogul who founded one of Nigeria’s leading telecommunications companies and owns Conoil, a Nigerian oil exploration company.
Issad Rebrab with $4.6 billion made the billionaires list as well. He is an Algerian businessman and owner of Cevital, an Algerian conglomerate into food processing, retail, real estate, and automotive industries. He is the largest private employer of workers in Algeria.
Dangote Earns N460bn in One Day, Surpasses 2 Russians, Asians on World Billionaires’ List
Aliko Dangote, a Nigerian Business Tycoon and CEO, Dangote Group has risen above two Russians, one Indian and a Chinese on the list of billionaires in the world as he made N460 billion in one day.
Dangote, on the Bloomberg Billionaire Index, clinched the 83rd position ahead of two Russian billionaires, Alexey Mordashov and Alisher Usmanov.
He currently leads a Chinese consumer retailer, Chuan-Fu and Indian commodities billionaire, Lakshmi Mittal on the list as the 81st world billionaire.
With a net worth of $19.7 billion, Aliko Dangote is the richest man in Africa, followed by Johann Rupert and Nicky Oppenheimer & family.
Investors King reports that Dangote, on Wednesday made over $1 billion, which amounted to about N460 billion as the demand in the purchase of Dangote Cement grew in one day.
His Cement Company had, two weeks ago declared a large share of buyback of which Dangote held on to the majority share of the company.
According to the Bloomberg Billionaire Index, the Nigerian Magnate has consecutively for 12 years remained as the richest man in Africa.
The Billionaire’s net worth skyrocketed following the massive increase in the Cement sales where he owns the majority share. His refinery which is almost completed is scheduled to commence operations before the end of this year.
Investors King had reliably gathered that the shares of Dangote Cement which sells at N288 per share make fast sales and good business at the Nigerian Stock Exchange.
The significant sales expansion was as a result of the rise in the demand of Dangote Cement across Africa with Nigeria as its primary market.
The top eight richest Africans in their ranking order reads; Aliko Dangote, Johann Rupert & family, Nicky Oppenheimer & family, Abdulsamad Rabiu, Nassef Sawiris, Mike Adenuga, Issad Rebrab & family, Naguib Sawiris.
Aliko Dangote, Johann Rupert Sit Atop Africa’s Forbes Richest Persons List in 2023
Aliko Dangote and Johann Rupert remained the richest people in Africa in 2023, according to the latest Forbes ranking released recently.
Aliko Dangote: £13.5 billion (Nigeria)
Once again, Nigeria billionaire, Aliko Dangote leads the list of Africa’s richest men. The founder of Dangote Group has held on to the top spot for more than eight years. His cement factory is the largest in Africa with operations in ten countries across Africa.
Dangote has also ventured into oil and gas production with his ambitious oil refinery in Lagos which will be the world’s largest oil refinery in a single production.
Johann Rupert and Family: $10.7 billion (South Africa)
Johann Rupert is the eldest son of business tycoon Anton Rupert. He is the chairman of the Swiss-based luxury goods company Richemont and the South Africa-based company Remgro. His business interest is within Retail and Fashion. Johann was also reported to inherit diamond from his late father.
Nicky Oppenheimer: $8.4 billion (South Africa)
Nicky Oppenheimer was formerly the chairman of De Beers’ diamond mining company. Born in 1945 to a German Jewish father. In 2012, Oppenheimer sold his family’s 40% stake in De Beers, the world’s biggest diamond producer for $5.2 billion in cash. Nonetheless, the billionaire still maintains private equity investments across Africa, Asia, the US and Europe.
Abdul Rasheed Rabiu: $7.6 billion (Nigeria)
Abdulsamad Rabiu is the founder of BUA Group, a Nigerian conglomerate active in cement production, sugar refining and real estate. In early January 2020, Rabiu merged his privately-owned Obu Cement company with the listed firm Cement Co. of Northern Nigeria, which he controlled.
The combined firm, called BUA Cement Plc, trades on the Nigerian stock exchange; Rabiu owns 98.2% of it. Just like his kinsman, Aliko Dangote, Abdulsamad Rabiu also have an oil refinery which is under construction in oil-rich Akwa Ibom State.
Nassef Sawiris: $7.2 billion (Nigeria)
Nassef Sawiris is an investor and a scion of Egypt’s wealthiest family. His most valuable asset is a nearly 6% stake in sportswear maker Adidas.
To everyone’s surprise, in December 2020, he acquired a 5% stake in New York-listed firm Madison Square Garden Sports, the mother company of the NBA Knicks and the NHL Rangers teams. Nassef also has a stake in cement giant Lafarge Holcim.
Mike Adenuga: $5.6 billion (Nigeria)
Adenuga who is Nigeria’s third richest man built his fortune in telecom and oil production. He is the founder of Globacom with more than 55 million subscribers. His oil company, Conoil operates 6 oil blocks in Niger Delta.
He was reported to have made his first million at age 26 selling lace cloth and distributing soft drinks.
Issad Rebrab and Family: $4.6 billion (Algeria)
Issad Rebrab founded Cevital, Algeria’s biggest privately-held company, serving as the CEO for more than 50 years. The company owns one of the largest sugar refineries in the world, with the capacity to produce 2 million tons a year.
Cevital also owns European companies, including French home appliances maker Groupe Brandt, an Italian steel mill and a German water purification company. Isaac Rebrab was jailed for 8 months for corruption and released in 2020. He denied any wrongdoing after his release.
Naguib Sawaris: $3.3 billion (Egypt)
Naguib Sawiris is a scion of Egypt’s wealthiest family. His brother Nassef is also a billionaire. He built a fortune in telecom, selling Orascom Telecom in 2011 to Russian telecom firm VimpelCom (now Veon) in a multibillion-dollar transaction.
Through his Media Globe Holdings, Sawiris owns 88% of the pan-European pay TV and video news network Euronews.
Patrice Motsepe: $3.1 billion (South Africa)
Patrice Motsepe is the founder and chairman of African Rainbow Minerals. He became a billionaire in 2008. In 2016, he launched a private equity firm, African Rainbow Capital, focused on investing in Africa.
In March 2021, Motsepe was elected president of the Confederation of African Football, the sport’s governing body on the continent.
Mohamed Mansour: $2.8 billion (Egypt)
Mohamed Mansour oversees the family conglomerate Mansour Group, which was founded by his father in 1952. The company has 60,000 employees.
Mansour established General Motors dealerships in Egypt in 1975, later becoming one of GM’s biggest distributors worldwide.
He served as Egypt’s minister of transportation from 2006 to 2009 under the Hosni Mubarak regime.
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