Judge confirms decision to sink Elon Musk’s $56B pay package despite Tesla shareholder vote
TechCrunch ^ | December 2, 2024 | Sean O'Kane
Posted on 12/02/2024 5:12:19 PM PST by deks
Delaware Chancery court judge Kathaleen McCormick has denied Tesla’s request to revise her decision to strike down CEO Elon Musk’s $56 billion pay package — despite shareholders voting at the company’s annual meeting this year to “re-ratify” the deal.
McCormick also awarded the plaintiff’s attorneys a $345 million fee — payable in cash or Tesla shares — that is eye-popping but still a fraction of the $5.6 billion those lawyers requested earlier this year.
Tesla awarded the compensation package to Musk in 2018, at a time when the electric automaker was in crisis. It laid out a series of stock price milestones that Tesla would have to hit in order for Musk to unlock the full value of the package — milestones the company easily cleared in the following years as Tesla ramped up its Model 3 and Model Y programs.
(Excerpt) Read more at techcrunch.com ...
TOPICS: Extended News; Government; US: Delaware
KEYWORDS: chancerycourt; elonmusk; kathaleenmccormick; tesla
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Delaware activist judge Kathaleen McCormick declines to reinstate Elon Musk's Tesla compensation package, once again overruling the company’s board and more than 72% of its shareholders.
Instead, she ordered Tesla shareholders to pay $345 million in legal fees to attorneys representing the plaintiff, who owned just nine shares of the company.
Judge McCormick previously ruled against @elonmusk during his acquisition of Twitter.
Before becoming the head of the Delaware Chancery Court, McCormick worked at the Delaware law firm Young Conaway. For decades, this firm and its employees have been large donors to President Joe Biden.
In 2016, Hunter Biden hosted a gubernatorial campaign event for Congressman John Carney at the offices of Young Conaway in Wilmington, Delaware.
Then-Vice President Joe Biden attended as the guest speaker. Carney, a close friend of Joe Biden for over 40 years, later became governor and nominated Kathaleen McCormick, then a partner at Young Conaway, to her current position on the Delaware Chancery Court.
In a March 2018 email, Hunter Biden claimed he had personal connections to every judge on the Delaware Chancery Court.
He wrote, "I will bring the suit in the Chancery court in Delaware - which as you know is my home state and I am privileged to have worked with and know every judge on the chancery court."
After Elon Musk purchased Twitter with the stated goal of promoting free speech, President Biden publicly called for a federal investigation into Musk.
Subsequently, the Biden administration’s Department of Justice, Securities and Exchange Commission, and Federal Trade Commission launched investigations and legal actions targeting Tesla, SpaceX, and X.
This latest decision by Judge McCormick, who has ties to Biden’s top donors and was nominated to the court by a close Biden ally, is another example of the Biden administration and its "Democratic" allies using the legal system to target political opponents.
https://x.com/KanekoaTheGreat/status/1863719111265751137
1 posted on 12/02/2024 5:12:19 PM PST by deks
To: deks
I thought Musk had reincorporated in Texas to avoid this?
To: TexasFreeper2009
He reincorporated in Texas after this lawsuit
3 posted on 12/02/2024 5:14:48 PM PST by deks (Deo duce, ferro comitante · God for guide, sword for companion)
To: deks
Another commie lib, American hating “judge.”
4 posted on 12/02/2024 5:16:30 PM PST by FlingWingFlyer (Okay Kamala! Where the hell is the "billion and a half" bucks?)
To: deks
What gives her the slightest authority to override the stockholders and the board of directors on a compensation package?
Chick law, strikes again. He will appeal.
5 posted on 12/02/2024 5:17:55 PM PST by DesertRhino (2016 Star Wars, 2020 The Empire Strikes Back, 2024... RETURN OF THE JEDI..)
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