the Judge...
Posted on 12/02/2024 5:12:19 PM PST by deks
Delaware Chancery court judge Kathaleen McCormick has denied Tesla’s request to revise her decision to strike down CEO Elon Musk’s $56 billion pay package — despite shareholders voting at the company’s annual meeting this year to “re-ratify” the deal.
McCormick also awarded the plaintiff’s attorneys a $345 million fee — payable in cash or Tesla shares — that is eye-popping but still a fraction of the $5.6 billion those lawyers requested earlier this year.
Tesla awarded the compensation package to Musk in 2018, at a time when the electric automaker was in crisis. It laid out a series of stock price milestones that Tesla would have to hit in order for Musk to unlock the full value of the package — milestones the company easily cleared in the following years as Tesla ramped up its Model 3 and Model Y programs.
(Excerpt) Read more at techcrunch.com ...
Instead, she ordered Tesla shareholders to pay $345 million in legal fees to attorneys representing the plaintiff, who owned just nine shares of the company.
Judge McCormick previously ruled against @elonmusk during his acquisition of Twitter.
Before becoming the head of the Delaware Chancery Court, McCormick worked at the Delaware law firm Young Conaway. For decades, this firm and its employees have been large donors to President Joe Biden.
In 2016, Hunter Biden hosted a gubernatorial campaign event for Congressman John Carney at the offices of Young Conaway in Wilmington, Delaware.
Then-Vice President Joe Biden attended as the guest speaker. Carney, a close friend of Joe Biden for over 40 years, later became governor and nominated Kathaleen McCormick, then a partner at Young Conaway, to her current position on the Delaware Chancery Court.
In a March 2018 email, Hunter Biden claimed he had personal connections to every judge on the Delaware Chancery Court.
He wrote, "I will bring the suit in the Chancery court in Delaware - which as you know is my home state and I am privileged to have worked with and know every judge on the chancery court."
After Elon Musk purchased Twitter with the stated goal of promoting free speech, President Biden publicly called for a federal investigation into Musk.
Subsequently, the Biden administration’s Department of Justice, Securities and Exchange Commission, and Federal Trade Commission launched investigations and legal actions targeting Tesla, SpaceX, and X.
This latest decision by Judge McCormick, who has ties to Biden’s top donors and was nominated to the court by a close Biden ally, is another example of the Biden administration and its "Democratic" allies using the legal system to target political opponents.
https://x.com/KanekoaTheGreat/status/1863719111265751137
I thought Musk had reincorporated in Texas to avoid this?
He reincorporated in Texas after this lawsuit
Another commie lib, American hating “judge.”
What gives her the slightest authority to override the stockholders and the board of directors on a compensation package?
Chick law, strikes again. He will appeal.
I assume he can appeal all the way to the SC, if necessary.
Is there anything President Trump can do to investigate the Delaware Chancery Court? I know it’s a state issue, but surely President Trump could have a federal investigation of some sort against them.
Agreed. But even if Musk gets all his legal fees compensated, the Dims are still making it clear to everyone else that it's costly to veer of the plantation like Musk did.
I did not realize you were a shareholder.
~~~~~~~~~~~~~~~~~~~~~~~~
You may think that CEO Musk sat back and did nothing to benefit the shareholders after creating Tesla. Whereas, in 2018 the requirements of the compensation deal were established (see in article above)...
"Tesla awarded the compensation package to Musk in 2018, at a time when the electric automaker was in crisis. It laid out a series of stock price milestones that Tesla would have to hit in order for Musk to unlock the full value of the package — milestones the company easily cleared in the following years..."
TESLA STOCK VALUE around $20 in 2018 --- now $357 in 2024
So no benefit to the stockholders... /off sarcasm
Nothing to see here. Move along, citizens.
Investigating the Chancery Court won’t get you much. Some of us in Delaware who have been impacted by their rulings know it’s one part law, one part judge and appeals are just a repetition of the first ruling,-as you saw in the Musk case.
That left a mark
Even in Space duuuude!
Another arrogant shitty judge who needs her lights punched out.
How does this judge get to decide the salary of the CEO of a private sector company and not call it fascism?
-PJ
I get it now.
It’s not about the amount of pay but the principle that Musk took no salary and worked entirely on a performance basis. He made investors lots of money. He made quality products.
Not one penny should be awarded to scavenger lawyers who seek to rob investors while pretending to represent them.
Divest from Delaware and New York. They’ve become third-world kleptocracies.
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