Posted on 02/02/2025 10:55:20 PM PST by Ultra Sonic 007
A Delaware judge has reaffirmed her ruling that Tesla must revoke Elon Musk’s multibillion-dollar pay package
Chancellor Kathaleen St. Jude McCormick on Monday denied a request by attorneys for Musk and Tesla’s corporate directors to vacate her ruling earlier this year requiring the company to rescind the unprecedented pay package.
McCormick also rejected an equally unprecedented and massive fee request by plaintiff attorneys, who argued that they were entitled to legal fees in the form of Tesla stock valued at more than $5 billion. The judge said the attorneys were entitled to a fee award of $345 million.
The rulings came in a lawsuit filed by a Tesla stockholder who challenged Musk’s 2018 compensation package.
McCormick concluded in January that Musk engineered the landmark pay package in sham negotiations with directors who were not independent. The compensation package initially carried a potential maximum value of about $56 billion, but that sum has fluctuated over the years based on Tesla’s stock price.
Defense attorneys then argued that the second vote makes clear that Tesla shareholders, with full knowledge of the flaws in the 2018 process that McCormick pointed out, were adamant that Musk is entitled to the pay package. They asked the judge to vacate her order directing Tesla to rescind the pay package.
McCormick, who seemed skeptical of the defense arguments during an August hearing, said in Monday’s ruling that those arguments were fatally flawed.
(Excerpt) Read more at whyy.org ...
Because of spite against Elon Musk, this judge may have just killed the golden goose for Delaware.
Gee whiz what a clown huh?
If you want to destroy something, put an angry, jealous, vindictive feminist in charge.
$345 million to the plaintiff attorneys?
Mon Dieu!
EVERY public company in the USA is going to get sued by share holders every time an executive gets a big raise.
The talk is that around 40-percent of the state ‘income’ comes off these corporate headquarters. So if half of them disappear....either the state budget has to find 20-percent of stuff to cut, or you increase regular income taxes on the wealthy by 30-to-40 percent (chasing them away).
Wouldn’t surprise me if Jill and Joe end up leaving in three years....over taxation.
Joe won’t live for 3 more years.
I would bet that they will relocate to Florida, if the DOJ doesn’t nail them first.
I thought Musk had moved out of Delaware because of this. Why is this judge still have a say then?
Not a goes by without the American judiciary demonstrating that it is out of control. Our legislators are too corrupt to do anything about it.
Not surprised on the lawyer amount. I got a check from a class action lawsuit from Verizon Wireless..didn’t know ni was part of since I got rid of the 5 years ago. My part of the $100m settlement was $12 and change.
Man is that true
Can trace all the bad stuff back to a Judiciary that abuses power flagrantly
Yeah
The Kritarchs
A self defining oligarchy answerable to no one
Our legislators are so corrupt and lazy, they love for federal judges to make law, so they won’t have to do their jobs.
The Secretary of State of Delaware is freaking out at the number of companies that are leaving the state. This leftist bitch really did massive damage on behalf of a president that now has been ousted from power.
Given that this compensation package was issued in 2018 (whilst still incorporated in DE), and given that Richard J. Tornetta (the one shareholder who filed the original suit claiming that this package was a breach of Tesla's fiduciary duties due to allegedly "violating performance metrics") filed the suit in the same year, this still fell under Delaware's jurisdiction. See here.
(Also, the language of the court opinion is hilariously biased: "Defendants retained extremely capable counsel, and a knockdown, drag-out lawsuit ensued...Plaintiff achieved total victory.")
It makes one wonder just how Tornetta — a former thrash metal drummer, who had only NINE SHARES of Tesla stock at the time of his suit — was inspired to launch this suit, and how he paid for it.
exactly it moved to texas in 2024, and then Musk had shareholders vote AGAIN, and they again approved the pay.
So I am confused how this judge is still in the mix since the company has been moved and the pay package approved afterwards for a 2nd time
I hate arrogant judges. I dare say this woman will come to regret it, unlike *MOST* arrogant judges.
This trouble making piece of sh*t should be beaten and left in the hospital with broken bones, and then he should be grateful that he wasn't killed.
There are people in the world who would kill someone for a few thousand dollars, and this guy is responsible for interfering with billions of dollars?
He needs a beating. The World would be a better place if people knew that stirring up trouble just for the sake of stirring up trouble, got you beaten.
they’re called “tyrants”
That's how I see them.
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