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Elon Musk cannot keep Tesla pay package worth more than $55 billion, Delaware judge rules

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Elon Musk cannot keep Tesla pay package worth more than  billion, Delaware judge rules


In trial testimony in November 2022, Musk denied that he dictated terms of the compensation package or attended any meetings at which the plan was discussed by the board, its compensation committee, or a working group that helped develop it.

McCormick determined, however, that because Musk was a controlling shareholder with a potential conflict of interest, the pay package must be subject to a more rigorous standard.

“The process leading to the approval of Musk’s compensation plan was deeply flawed,” McCormick wrote in the colorfully written 200-page decision. “Musk had extensive ties with the persons tasked with negotiating on Tesla’s behalf.”

McCormick specifically cited Musk’s long business and personal relationships with compensation committee chairman Ira Ehrenpreis and fellow committee member Antonio Gracias. She also noted that the working group working on the pay package included general counsel Todd Maron who was Musk’s former divorce attorney.

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“In fact, Maron was a primary go-between Musk and the committee, and it is unclear on whose side Maron viewed himself,” the judge wrote. “Yet many of the documents cited by the defendants as proof of a fair process were drafted by Maron.”

McCormick concluded that the only suitable remedy was for Musk’s compensation package to be rescinded. “In the final analysis, Musk launched a self-driving process, recalibrating the speed and direction along the way as he saw fit,” she wrote. “The process arrived at an unfair price. And through this litigation, the plaintiff requests a recall.”

Greg Varallo, a lead attorney for the shareholder plaintiff, praised McCormick’s decision to reverse the “absurdly outsized” Musk pay package for Musk.

“The fact that they lost this in Delaware court, it’s a jaw dropper,” said Wedbush Securities analyst Dan Ives. “It’s unprecedented, a ruling like this. I think going in investors thought it was just typical legal noise and nothing was going to come out about it. The fact that they went head to head with Tesla and Musk and the board and voided this, it’s a huge legal decision.”

During his trial testimony, Musk downplayed the notion that his friendships with certain Tesla board members, including sometimes vacationing together, meant that they were likely to do his bidding.

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The plan called for Musk to reap billions if Tesla hit certain market capitalization and operational milestones. For each incidence of simultaneously meeting a market cap milestone and an operational milestone, Musk, who owned about 22% of Tesla when the plan was approved, would get stock equal to 1% of outstanding shares at the time of the grant. His interest in the company would grow to about 28% if the company’s market capitalization grew by $600 billion.

Each milestone included growing Tesla’s market capitalization by $50 billion and meeting aggressive revenue and pretax profit growth targets. Musk stood to receive the full benefit of the pay plan, $55.8 billion, only by leading Tesla to a market capitalization of $650 billion and unprecedented revenues and earnings within a decade.

Tesla has achieved all twelve market capitalization milestones and eleven operational milestones, providing Musk nearly $28 billion in stock option gains, according to a January post-trial brief filed by the plaintiff’s attorneys. The stock option grants are subject to a five-year holding period, however.

Defense attorney Evan Chesler argued at trial that the compensation package was a “high-risk, high-reward” deal that benefitted not just Musk, but Tesla shareholders. After the plan was implemented, the value of the company, based in Austin, Texas, climbed from $53 billion to more than $800 billion, having briefly hit $1 trillion.

Chesler also said Tesla made sure that the $55 billion compensation figure was included in the proxy statement because the company wanted shareholders to know that “this was a heart-stopping number that Mr. Musk could earn.”

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State Police Arrest Dover Man for Assault and Aggravated Menacing in Dover – Delaware State Police – State of Delaware

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State Police Arrest Dover Man for Assault and Aggravated Menacing in Dover – Delaware State Police – State of Delaware


Date Posted: Saturday, April 18th, 2026

The Delaware State Police have arrested 45-year-old Joseph Chapler, from Dover, Delaware, following an assault and aggravated menacing incident that occurred Thursday night in Dover.

On April 16, 2026, at approximately 10:20 p.m., troopers responded to the parking lot of Microtel, located at 1703 East Lebanon Road in Dover for a report of an assault and aggravated menacing. When troopers arrived, they learned that a man and woman were walking on a path behind the Microtel when they were approached by an unknown male suspect. The suspect threatened the victims, pointed a gun at them, and sprayed the female victim with pepper spray before running away. The victims ran to safety and called 9-1-1. The female victim was treated by EMS but refused medical attention.

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Through investigative means, detectives identified Joseph Chapler as the suspect and obtained a warrant for his arrest.

On April 17th, Chapler was arrested and taken to Troop 3, where he was charged with the crimes listed below, arraigned by Justice of the Peace Court 2, and committed to the Sussex Correctional Institution on a $94,001 cash bond.

Joseph Chapler mugshot photo with gray background

  • Possession of a Firearm During the Commission of a Felony (Felony)
  • Assault 2nd Degree (Felony) – 2 counts
  • Aggravated Menacing (Felony) – 2 counts
  • Terroristic Threatening – 2 counts
  • Criminal Trespass 3rd Degree

If you or someone you know is a victim or witness of a crime or have lost a loved one to a sudden death and need assistance, the Delaware State Police Victim Services Unit / Delaware Victim Center is available to offer you support and resources 24 hours a day through a toll-free hotline at 1-800-VICTIM-1 (1-800-842-8461). You may also email the Victim Services Unit at DSP_VictimServicesMail@delaware.gov.

 

 

 

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Disclaimer: Any individual charged in this release is presumed innocent until proven guilty in a court of law.


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Local police departments earn state accreditation

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Local police departments earn state accreditation


The Delaware Police Officer Standards and Training Commission recently announced that the Dewey Beach Police Department and Rehoboth Beach Police Department have both earned state accreditation from the Delaware Police Accreditation Commission.

As part of the rigorous process, a team of DPAC assessors ensured all accreditation standards were met by completing comprehensive, on-site inspections of each agency, reviewing their policies and procedures for compliance, and conducting interviews with department members. 

“This milestone represents a significant step forward for public safety in Delaware. The initial state accreditation of these police agencies reflects a strong commitment to professionalism, accountability and excellence in law enforcement. I commend each department for their dedication to serving their communities with integrity and for upholding the highest standards,” said Joshua Bushweller, Department of Safety and Homeland Security secretary and DPAC chair.



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DDA inducts three Delaware Century Farms – 47abc

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DDA inducts three Delaware Century Farms – 47abc


Dover, Del. – Three farms, one from each of Delaware’s counties, were inducted into the Century Farm Program by the state Department of Agriculture on Thursday at the Delaware Agricultural Museum.

Each of the family farms has been owned and operated for at least a century. Each received a sign for their farms, an engraved plate and legislative tributes.

In addition to Secretary of Agriculture, Don Clifton, and Deputy Secretary Jimmy Kroon, state Senators David Wilson (R – District 18) and Kyra Hoffner (D – District 14) were also in attendance.

Wright Family Farms are located in Harrington in Kent County. In 1919, the farm was purchased by William Wright. Over a century later, William’s grandson, Ronald, is the owner and his great-grandson, Greg, said he hopes to continue the family legacy by buying the farm from his father. 

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Although the event celebrated each family for their hard work and resilience, it also highlighted the challenges farmers have to surmount to stay in business today, let alone for a hundred years.

“The price of equipment, the price of fertilizer, the price of seed, everything is just gone up,” Greg said. “So, you know, everything’s going up that we gotta purchase just to stay in business.”

Clifton, Kroon and Wilson also echoed difficulties in balancing the need to preserve agricultural land with the need to develop housing and sustainable energy projects like solar power.

“I know housing is very important, and we want people to always have good housing, but at some point, I think you’re going to saturate the area with more houses than you have food to feed these people,” Wilson said.

Kroon also said there are difficulties in keeping future generations motivated to stay in farming.

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“When you think about it in the context of multi-generational farm families, there’s a real long-term challenge where a new generation may think twice about whether they want to keep farming if it’s always a struggle,” he said.

Clifton said farming has always been a challenging way of life, but it has been so since time immemorial.

“These families, their experience shows that they have an appreciation for the way of life and perseverance and that’s to be honored and emulated to the greatest extent possible,” he said.

Greg said he hopes to pass down the way of life so that his family legacy can live on for another hundred years, as well as for other families.

“A hundred years as the same family tilling the land, that’s, you know, that’s an honor right there,” Greg said. “And I hope that more farmers who are close to 100 years old will be doing the same thing. You know, keep it in the family.”

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