Posted on 02/03/2025 4:57:01 PM PST by Red Badger
Remember last year when an activist Delaware judge invalidated Elon Musk's compensation package at Tesla--twice--despite it having been overwhelmingly approved by stockholders--twice?
The compensation package was unconventional--he wouldn't get paid unless he delivered extraordinary results. He multiplied the value of the company by 10x. Which is shareholders approved the package--he made them extremely wealthy, and they rewarded him by making him even wealthier. He put it all on the line, performed, and the judge took it all away and gave a bunch of it to lawyers.
The judge was, by the way, closely tied to the Biden crime family.
Delaware, of course, is Biden territory, and Biden was engaged in a war on Elon at the same time McCormick was making adverse rulings against him. All part of the lawfare pushed by the last administration.
The judge awarded attorney's fees to the lawyers who blocked Elon's pay package--which she claimed was excessive--and the numbers were staggering.
No wonder everybody in corporate America freaked out. If you are targeted by politicians, your entire business could be destroyed.
Yeah, well, FAFO. Major corporations are fleeing Delaware so fast that the governor himself is squealing and looking for a way to repair the reputation of the state as the most corporate-friendly in the nation.
It is a genuine crisis.
Somewhere around 15%-20% of Delaware's budget comes from corporate franchise taxes. For years, venture capital has pretty much-required firms they invest in to incorporate in Delaware because the state's corporate laws are well understood. It is seen as a safe haven to prevent frivolous lawsuits.
Now, the opposite is the case, all due to the attack on Elon Musk as part of the vendetta a single judge had against him.
Delaware is facing a further exodus of tech companies amid reports that Meta and Dropbox are moving out of the state.
Newsweek has contacted Meta and Dropbox for comment via email.
Why It Matters
Delaware has long been considered a business-friendly state due to its corporate tax advantages, and is home to multiple large companies. However, backlash against the First State has intensified after Delaware Judge Kathaleen McCormick ruled that Tesla CEO Elon Musk's record-breaking $56 billion compensation package was excessive.
Musk, who has become increasingly influential in both the political and corporate world, urged companies to pull out of the Democratic-led state. In February 2024, he announced that SpaceX was relocating its incorporation from Delaware to Texas, following Tesla's corporate move from California to Texas in 2021.
The scale of the disaster is incalculable. Texas and Nevada have become the preferred destination for incorporation--not just for new companies but for some of the largest corporations in the world. The uncertainty that one judicial decision caused will likely cost Delaware taxpayers billions of dollars.
Blue states have FA for a very long time, and over the past few years they have been creeping into the FO stage of the process.
Earnest Hemingway famously said that going bankrupt is a process that happens gradually over time as bad decisions are made but comes suddenly as a tipping point is hit.
How did you go bankrupt? Gradually...then suddenly.
It's like eating your seed corn: everything is great until it runs out. Then comes starvation.
The left hates Donald Trump and Elon Musk so much that they are willing to destroy themselves in order to "get" them.
Delaware is just the latest entity that has discovered that fighting Trump--and Elon Musk--is a risky business.
It has been said that the power to tax is the power to destroy.
That can also be said of corrupt judges..............
I feel sorry for the business that can’t move out of dark blue states. They should all be leaving
Nice work if you can get it.
First NYS with the horrific, unprecedented judgements against President Trump making it very real estate unfriendly.
Now Delaware.
And, of course, California with its horrible anti-business and anti-energy laws and regs driving Tesla and Chevron out of the state.
Fantastic! Look for this to accelerate.
They need to round up all these types of judges and throw them in the hoosegow.
I think that this judge is a moron who must not have gotten the memo.
Having Musk distracted by Tesla would have been GOOD for the Deep State, especially by the time of this stupid judge’s second decision.
People need to take the election of state & county judges seriously and not just ad a last-minute decision while in the voting booth.
The corrupt Delaware judge awarded $345 million (!) to the Plaintiff attorneys who brought this lawsuit against Musk.
I predicted a week ago that every unhappy (or greedy) stock holder in a public company that is domiciled in Delaware is now going to file a lawsuit based on excessive Executive compensation.
Hundreds (maybe thousands) of publicly owned companies currently incorporate in Delaware because of (formerly!) favorable business laws.
Companies have to go along with Red Fascism for the Democrats and RINOs to favor them. Otherwise, be prepared for war/law fare.
I am about to form quite a number of enterprises, connected up with some financing that some partners and I are obtaining. Even before the Musk decision, I was not too kindly disposed toward Delaware, but at this point, there is simply no way that I will ever use Delaware for anything except as a transit point between Maryland and New Jersey, on those very few occasions when I happen to be traveling in the area. I will be using Wyoming, as it protects the anonymity of the owners of all entities, not just corporations.
That stupid arrogant bitch will come to regret her mouth writing a check her @$$ could not cash.
I hate arrogant judges. There needs to be legal means to hold them accountable for their nasty corrupt decisions.
If this stands, then any leftist stock holder of any publicly traded corporation can bring a similar lawsuit...............
Delanoware.
You have that right!
This is equivalent of another dimmocrat stepping on a rake because they hate Orange Man and Elon.
Go woke. Your whole state goes broke.
Has the judgment been appealed?
I would think it’s in process.............
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