Connect with us

Delaware

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

Published

on

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.

Advertisement

“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McCormick concluded that the only suitable remedy was for Musk’s compensation package to be rescinded.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.

Advertisement

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.”

Advertisement



Source link

Delaware

Trump will go to Delaware for the dignified transfer of the 2 National Guard members killed in Syria

Published

on

Trump will go to Delaware for the dignified transfer of the 2 National Guard members killed in Syria


WASHINGTON (AP) — President Donald Trump is traveling to Dover Air Force Base in Delaware on Wednesday for a dignified transfer for the two Iowa National Guard members killed in an attack in the Syrian desert that is testing the rapprochement between Washington and Damascus.

The two guardsmen killed in the attack on Saturday were Sgt. Edgar Brian Torres-Tovar, 25, of Des Moines, and Sgt. William Nathaniel Howard, 29, of Marshalltown, according to the U.S. Army. Both were members of the 1st Squadron, 113th Cavalry Regiment. A U.S. civilian working as an interpreter was also killed.

The ritual at Dover Air Force Base honors U.S. service members killed in action and is one of the most solemn duties undertaken by the commander in chief.

During the process, transfer cases draped with the American flag holding the remains of fallen soldiers are carried from the military aircraft that carried them to Dover to an awaiting vehicle to transport them to the mortuary facility at the base. There, the fallen service members are prepared for their final resting place.

Advertisement

Trump, a Republican, said during his first term that witnessing the dignified transfer of service members’ remains is “the toughest thing I have to do” as president.

Remembered as ‘the best of Iowa’

The Iowa National Guard is remembering the two men as heroes. Howard’s stepfather, Jeffrey Bunn, said Howard “loved what he was doing and would be the first in and last out,” noting that he had wanted to be a soldier since he was a young boy.

In a post on the Meskwaki Nation Police Department’s Facebook page, Bunn – who is chief of the Tama, Iowa, department – called Howard a loving husband and an “amazing man of faith” and said Howard’s brother, a staff sergeant in the Iowa National Guard, would escort “Nate” back to Iowa.

Torres-Tovar was remembered as a “very positive” person who was family oriented and someone who always put others first, according to fellow guardsmen who were deployed with Torres-Tovar and issued a statement to the local TV broadcast station WOI.

“They were dedicated professionals and cherished members of our Guard family who represented the best of Iowa,” said Maj. Gen. Stephen Osborn, adjutant general of the Iowa National Guard.

Advertisement

Trump stands by Syrian leader al-Sharaa

On Saturday, Trump told reporters that he was mourning the deaths and vowed retaliation.

Trump said Monday that he remained confident in the leadership of interim Syrian President Ahmed al-Sharaa, the onetime leader of an Islamic insurgent group who led the ouster of former President Bashar Assad, whose family had an iron grip on Syrian rule for decades.

The U.S. president welcomed al-Sharaa to Washington last month for a historic visit to the White House and formally welcomed Syria as a member of the U.S.-led coalition to fight the Islamic State group. Hundreds of U.S. troops are deployed in eastern Syria as part of a coalition fighting IS.

“This had nothing to do with him,” Trump told reporters in the Oval Office on Monday. “This had to do with ISIS.”

Three other members of the Iowa National Guard were injured in the attack. As of Monday, two were in stable condition and the other in good condition. The Pentagon has not identified them.

Advertisement

Trump traveled to Dover several times during his first term to honor the fallen, including for a U.S. Navy SEAL killed during a raid in Yemen, for two Army officers whose helicopter crashed in Afghanistan and for two Army soldiers killed in Afghanistan when a person dressed in an Afghan army uniform opened fire.



Source link

Continue Reading

Delaware

Delaware will save more than $300M after federal tax decoupling takes effect

Published

on

Delaware will save more than 0M after federal tax decoupling takes effect


The fiscal year 2027 forecast remained relatively flat from the October meeting. But some expenses declined, including salaries for teachers. Brian Maxwell, state director of Management and Budget, said teacher salary expenses were down because student enrollment has dropped. He said federal immigration policy could be impacting the state’s Multilingual Learners.

“Obviously, there have been a number of students that may not be showing up to class just because of the enforcement of [Immigration and Customs Enforcement],” he said. “So some of the families may be scared to actually send their kids to school.”

Maxwell said overall enrollment is down, but the number of students needing special education services is up. The next student count is in February.

DEFAC members also discussed the revised Healthcare Spending benchmark. In September, the subcommittee devised a methodology that only used healthcare inflation, resulting in a 7.13% for 2026.

Advertisement

“We all gathered in October and there was a fair amount of concern with that outcome,” said Christen Linke Young, director of Health and Social Services. “So the subcommittee reconvened earlier this month to consider a new approach.”

After adopting the methodology using expected national inflation data and a three-year measure of health care cost growth, the benchmark now sits at 4.9%. But Young said there would be no penalty for hospitals exceeding the guideline.

Gov. Meyer and the state’s largest nongovernmental employer, ChristianaCare Health System, reached an agreement earlier this year in a lawsuit the regional hospital system filed last year. The Diamond State Hospital Cost Review Board was created by lawmakers in June 2024 to try to rein in hospital spending. But the agreement, which requires new legislation and the governor’s signature, would strip the board of its authority to approve and modify hospital budgets.



Source link

Advertisement
Continue Reading

Delaware

Snow melting soon as Delaware warms after icy blast

Published

on

Snow melting soon as Delaware warms after icy blast


play

Delaware may have seen its first snowfall of the season, but it won’t stick around for long.

Despite below freezing temperatures Dec. 15 and Dec. 16, it’s possible that by the weekend there won’t be a trace of snow.

Advertisement

Here’s what to know about this week’s weather and snow melt.

When will the snow melt away?

While Delaware will face freezing temperatures Dec. 15 and Dec. 16, the National Weather Service forecast is calling for a warmup starting on Dec. 17. Here’s the forecast:

New Castle County

Cold weather will continue this evening and into Dec. 16 with lows dropping into the teens. The county will hit 32 degrees on Dec. 16 before dropping to 22 that night. Temperatures start climbing into the low 40s with partly sunny skies on Dec. 17. Highs will hit 51 degrees on Dec. 18. If most of the snow hasn’t melted by that point, it should be gone after rain goes through the area during the overnight between Dec. 17 and Dec. 18. Highs will remain above freezing, hitting 44 on Dec. 18.

Kent County

Lows will drop into the teens overnight before climbing above freezing on Dec. 16. On Dec. 17, Kent County will see partly sunny skies with highs in the upper 40s. It will be mostly cloudy on Dec. 18 with highs hitting 55. There’s a 90% chance of rain during the overnight hours into Dec. 19. The 19th is looking mostly cloudy with highs reaching 47.

Advertisement

Sussex County

After lows hit 19 during the overnight tonight, the high for Dec. 16 will be 38 degrees with sunny skies. Any snow in the southern part of the state will vanish Dec. 17 and Dec 18. Both days will feature sunny skies with highs reaching the low 50s on Dec. 17 and almost hitting 60 on Dec. 18.

What is black ice?

Despite the warm up, overnight temperatures are expected to be below freezing. If you are driving at night, you’ll need to watch out for black ice.

According to The Weather Channel, black ice is a thin layer of ice that forms on roads and is difficult to see. It’s generally found on bridges, overpasses and spots on the road shaded by trees or other objects.

Advertisement

If roadways are wet from rain, snow or fog and temperatures drop below 32 degrees, black ice can form on roadways.

If you hit black ice, you should do the following:

  • Keep your steering wheel straight.
  • Do not brake
  • Take your foot off the accelerator to reduce speed



Source link

Continue Reading

Trending