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Delaware

Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge

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Tesla wants shareholders to reinstate  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.

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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.

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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.

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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.

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Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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

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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.

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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.

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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.

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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.



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Delaware

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

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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.

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“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.



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Snow melting soon as Delaware warms after icy blast

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Snow melting soon as Delaware warms after icy blast


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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.

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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.

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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.

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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



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