Twitter's new CEO Elon Musk, who is also the CEO of car maker Tesla, may take the stand at a Delaware court in the United States as part of a trial of his $55 billion pay package from the company that he founded.
The suit, filed by a shareholder of the company, questions the pay that Musk receives from Tesla as the CEO. While he closed a controversial Twitter deal of $44 billion only a few weeks ago, he is also the CEO of Tesla and SpaceX, companies he has founded.
Musk's takeover of Twitter has been mired by chaos and uncertainty with top executives of the microblogging platform being fired and Musk going back and forth on the $8 verification process.
As the court begins its trial, here's a look at what the case is all about:
What is the trial against Musk?
The trial is related to a suit filed by Richard Tornetta, a shareholder of Tesla. It alleges that the decision by the board members of the company in 2018 was not an independent one.
AFP reported that Tornetta has alleged that the directors of Tesla failed in their duties and were unable to maintain independence as Musk dictated his terms to directors. The plaintiff said that the board could not object to the CEO pay package.
The suit sought to nullify the package and if the court sides with the plaintiff, Musk may have to pay back a certain sum of money back.
The case was being heard in the Delaware Chancery Court, by judge Kathaleen St. J. McCormick who had also presided over Musk's case with Twitter which ultimately forced him to close the $44 billion deal.
The court presides over the case this week, but a decision around it may not come soon.
According to a report on CNN, Tornetta has alleged that Musk secured the package through his influence over the board of directors and it was to ultimately fund his "personal ambition" to colonise Mars.
Tornetta, according to court documents, holds only nine Tesla shares from February 2018.
CNN reported that Musk's pay package was made up of stock to be paid out in 12 tranches if certain milestones were hit by the company. In totality, it would add up to $55. billion.
What has happened in the case so far?
The first witness to take the stand in the case, Ira Ehrenpreis, testified in court on Monday. Ehrenpreis served on the board of Tesla and was part of the team that approved the giant pay package for Musk.
Ehrenpreis told the court that the board okayed the plan to keep Musk engaged in the company. Bloomberg quoted Ehrenpreis as saying, "We wanted Elon to be at the head of Tesla for a long time."
The report quoted Ehrenpreis as saying that the board realised in 2017 that Musk was a "serial entrepreneur" and hence approved this package to ensure he did not lose interest in the company.
The Wall Street Journal quoted court filings from the defendants as saying, "At a critical juncture for the Company, the Plan motivated Musk to focus his exceptional talents on Tesla when Musk's future with Tesla was uncertain, especially given his other interests and opportunities."
According to reports, Musk is likely to appear before the court on Wednesday.
At the moment Musk is the CEO of Twitter, Tesla, SpaceX and The Boring Company, among others
What has Musk said so far?
Musk, known to be unapologetic about his decisions, has said it was "me negotiating against myself" during the decision-making process for his pay package, Bloomberg reported.
However, his lawyers have argued that the plan for Musk was also linked to the company's performance. AFP reported his lawyers saying that Tesla's value in the stock market had increased ten folds since the adoption of the plan.
