Delaware
Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge
AUSTIN, Texas (AP) — Tesla will ask shareholders to reinstate a $56 billion compensation package for CEO Elon Musk that was rejected by a judge in Delaware this year and to move the electric car maker’s corporate home from Delaware to Texas.
In a filing with federal regulators early Wednesday, the company said it would ask shareholders to vote on both issues during its annual meeting on June 13.
In January, Chancellor Kathaleen St. Jude McCormick ruled that Musk is not entitled to a landmark compensation package awarded by Tesla’s board of directors that is potentially worth about $55.8 billion over 10 years starting in 2018.
Five years ago, a Tesla shareholder lawsuit alleged that the pay package should be voided because it was dictated by Musk and was the product of sham negotiations with directors who were not independent of him.
Musk said a month after the judge’s ruling that he would try to move Tesla’s corporate listing to Texas, where he has already moved company headquarters.
Almost immediately after the judge’s ruling, Musk did exactly that with Neuralink, his privately held brain implant company, moving its corporate home from Delaware to Nevada.
In a letter to shareholders this week, Chairperson Robyn Denholm said that Musk has delivered on the growth it was looking for at the automaker, with Tesla meeting all of the stock value and operational targets in a 2018 CEO pay package that was approved by shareholders.
“Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years that has helped to generate significant growth and stockholder value,” Denholm wrote. “That strikes us — and the many stockholders from whom we already have heard — as fundamentally unfair, and inconsistent with the will of the stockholders who voted for it.”
Tesla posted record deliveries of more than 1.8 million electric vehicles worldwide in 2023, according to a regulatory filing. But the value its shares has eroded quickly this year as sales of electric vehicles soften.
Future growth is in doubt and it may be a challenge to get shareholders to back a fat pay package in an environment where competition has increased worldwide and demand for electric vehicle sales is fading. Shareholders also will be asked to cast a nonbinding advisory vote on future executive compensation.
Tesla’s shares have lost more than one third of their value this year as massive price cuts have failed to draw more buyers. The company said it delivered 386,810 vehicles from January through March, nearly 9% fewer than it sold in the same period last year.
At the time of the Delaware court ruling, Musk’s package was worth more than $55.8 billion, but the court may have cost the mercurial CEO over $10 billion due to the company’s stock slide this year. The filing said Musk’s 2018 compensation was worth $44.9 billion at the close of trading on April 12.
Since last year, Tesla has cut prices as much as $20,000 on some models. The price cuts caused used electric vehicle values to drop and clipped Tesla’s profit margins.
This week, Tesla said it was letting about 10% of its workers go, about 14,000 people.
In the filing, Tesla’s board wrote that the decision to seek shareholder approval of Musk’s 2018 pay package was made by the board after it received a report from a special committee of one board member, Kathleen Wilson-Thompson.
The board wrote that if there is any significant vote against future executive pay packages, “we will consider our stockholders’ concerns, and the compensation committee will evaluate whether any actions are necessary to address those concerns.”
Shares of Tesla Inc., which slid another 8% this week, were down slightly in trading just after Wednesday’s opening bell.
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This story has been corrected to explain that shareholder voting on future executive compensation is advisory only.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Delaware
Thomas Jefferson University to run Delaware’s first medical school
Thomas Jefferson University is opening a regional campus of its Sidney Kimmel Medical College in Delaware, an effort that will result in the state’s first medical school.
Jefferson beat out three other bidders to establish the four-year program in partnership with the state. The other bidders were the Philadelphia College of Osteopathic Medicine, the consulting firm PriceWaterhouseCoopers and Ponce Health Sciences University in Puerto Rico, Spotlight Delaware reported.
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The inaugural class of 40 medical students will begin instruction in July 2028. Initially, the campus will be based at the University of Delaware in Newark, with Jefferson faculty providing instruction. A permanent home for the campus is still being finalized, the Inquirer reported.
The medical students will receive 18 months of preclinical training on campus before receiving clinical training from healthcare providers in Delaware’s southern counties, where the state’s physician shortage is most deeply felt. That shortage is compounded by an aging population, Delaware officials said.
“Jefferson is committed to being part of the solution to Delaware’s physician shortage,” Jefferson CEO Dr. Joseph Cacchione said in a statement. “We are proud to help build a future where every Delawarean has access to the care they deserve. Jefferson is all in.”
The school’s creation is being supported by $157.4 million from the Centers for Medicare and Medicaid Services.
Delaware is one of three states without a Doctor of Medicine or Doctor of Osteopathic Medicine program. Since the late 1960s, Jefferson and the Philadelphia College of Osteopathic Medicine have reserved seats for Delaware students.
“Sidney Kimmel Medical College has trained generations of physicians for more than 200 years, more than any other medical college in the country,” Said Ibrahim, dean of Sidney Kimmel Medical College, said in a statement. “It is a privilege to bring our mission to Delaware’s patients and communities.”
Jefferson has announced several expansions recently. The university is establishing a full-time doctor of nursing practice-nurse anesthesia program and several online graduate programs at the Lehigh Valley Health Network Center for Healthcare Education in Lehigh County. It also is opening a satellite respiratory therapy lab at Lehigh Valley Hospital-Cedar Crest in Allentown.
Delaware
Delaware is getting its first medical school, with classes set to start in 2028
Delaware officials said medical students will start their classroom instruction at UD and then do their clinical training at offices and health care systems in Kent and Sussex counties, where the shortage of doctors is most acute.
However, ChristianaCare, which has its own partnership with Jefferson, is not participating. The state’s largest health care system was part of Philadelphia College of Osteopathic Medicine’s unsuccessful bid to operate the school. In a joint statement from ChristianaCare and PCOM, the two organizations expressed disappointment with not being part of the consortium of higher education institutions and healthcare organizations.
“The path forward raises genuine questions about whether the school’s goals can be fully realized without ChristianaCare’s meaningful participation in its clinical training mission,” it said. “The success of any four-year medical program depends not just on an academic institution, but on a true and committed partnership with its clinical partners — one built on shared mission, mutual investment and trust developed over time.”
Students in the first class can get their tuition subsidized, covering all of their education costs, in exchange for an agreement to work in rural Delaware for five years.
Running the medical school is expected to cost Jefferson $78 million over the next five years. The money is from a federal rural health grant through the Rural Health Transformation Program, which congressional Republicans created in the so-called “One Big, Beautiful Bill Act.”
The program will give $50 billion to every state over five years, though exactly the total each will eventually receive is unclear. Half of the money is to be distributed equally to states and the other half is awarded by the Centers for Medicare and Medicaid Services based on a variety of factors.
The state applied for $1 billion late last year to improve health care in Kent and Sussex counties. The Trump administration has so far allocated Delaware $157 million. Delaware is expected to receive at least $500 million over the life of the fund.
Delaware
Crash closes U.S. 42 in both directions in Delaware County
Delaware Ohio Housing Growth
A look at the rapid expansion of housing developments in Delaware, Ohio.
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Every few weeks Delaware city approves a new housing development. The city has more than 4,000 housing units in its development pipeline, contributing to the rapid growth in one of the fastest-growing counties in Ohio.
A crash shut down U.S. 42 in Delaware County in both directions June 2.
As of 7 a.m., U.S. 42 was closed from U.S. 23 to Jegs Place near the Delaware Municipal Airport.
It was not immediately clear whether anyone was injured in the crash or when the roadway would open.
This is a developing story and will be updated
Public Safety and Breaking News Reporter Bailey Gallion can be reached at bagallion@dispatch.com.
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