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☆ Elon Musk might not get to keep his $55 billion Tesla package. But overall, CEOs shouldn't panic about their paydays.
▼ + stars: | 2024-03-07 | by ( Lloyd Lee | ) www.businessinsider.com time to read: +4 min

A judge recently voided Elon Musk's $55 billion compensation package at Tesla. AdvertisementA Delaware judge recently ruled that Elon Musk should not get a $55 billion compensation package for his work at Tesla despite his contributions to the company. So now that Musk's compensation has to be renegotiated, will other executives kiss their massive bonuses, stock options, and paychecks, goodbye? The more Tesla was worth, the higher Musk's compensation would get. "I don't know whether individual CEOs are panicking or taking Elon Musk as a role model, thinking, 'Well, if he doesn't like Delaware, then I have to move out of Delaware,'" Lipton said.

Persons: —, Elon, Tesla, I'm, James, Kathaleen McCormick, Musk, Musk Ann Lipton, Lipton, Musk's, Kimbal, Elon Musk Organizations: Elon Musk's, Tesla, Service, University of California, Delaware Supreme, Tulane University, Business Locations: Delaware, Los Angeles

☆ Tesla board silent as investors await next steps after Elon Musk's $56 billion pay package revoked
▼ + stars: | 2024-02-13 | by ( Lora Kolodny | In Lorakolodny | ) www.cnbc.com time to read: +7 min

Antonio Masiello | Getty ImagesTwo weeks after a Delaware court ruled that Tesla must rescind Elon Musk's $56 billion pay package, the company's board remains mum on what the decision means for shareholders or what's next for the mercurial CEO. CNBC sent requests for additional information to Tesla investor relations, Musk and some board members. "Given the high stakes involved, it is likely that Tesla will appeal the decision," Kastiel said in an email. In the absence of a successful appeal, "any new compensation arrangement with him will have to be assessed" in light of McCormick's decision, Kastiel said. Kastiel also said that the decision likely makes Musk and Tesla more vulnerable to other types of lawsuits.

Persons: Elon Musk, Antonio Masiello, Tesla, Chancellor Kathaleen McCormick, Musk, Richard Tornetta, Kimbal, Robyn Denholm, JB Straubel, Greg Varallo, Bernstein Litowitz Berger, Grossmann, Varallo, Kobi, Kastiel wasn't, Kastiel, Eric Talley, Talley, wasn't, He's, Walter Isaacson, CNBC's, you'll, Isaacson, Ann Lipton, Lipton, — Organizations: Tesla Inc, Fratelli, Getty, Elon Musk's, SEC, CNBC, Tel Aviv University, Washington University Law, Nasdaq, Columbia Law School, SpaceX, Tesla, Tulane Law Locations: Italy, Rome, Delaware, Texas, Tesla, Nevada, California

☆ Tulane Law professor Ann Lipton on Elon Musk's pay package, legal impact of Tesla's move to Texas
▼ + stars: | 2024-02-06 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTulane Law professor Ann Lipton on Elon Musk's pay package, legal impact of Tesla's move to TexasAnn Lipton, Tulane Law professor, joins 'Squawk Box' to discuss the fallout from a Delaware judge's ruling invalidating Elon Musk's $56 billion pay package, the legal implications of Tesla's move from Delaware to Texas, and more.

Persons: Ann Lipton, Texas Ann Lipton Organizations: Tulane, Elon, Elon Musk's Locations: Texas, Delaware

☆ Tesla whistleblowers filed a complaint to the SEC in 2021, but the agency never interviewed them. Here's what the complaint said
▼ + stars: | 2023-10-12 | by ( Lora Kolodny | ) www.cnbc.com time to read: +22 min

With a "goodwill" repair, Tesla essentially foots the bill for labor, parts or accessories given to keep a customer happy. "Were Tesla to accurately categorize its 'goodwill' repairs as warranty repairs, it would likely need to restate earnings for every quarter since at least 2017," the tipsters wrote in their submission. In one example, the tipsters said screenshots showed other Tesla employees changed the status of material used in manufacturing from "scrap" to "work in progress." In another example, the complaint said screenshots showed Tesla employees had manually changed the status of "used" cars to "new" in a program that tracked vehicle deliveries data. In correspondence to the agency expanding on their complaint, the whistleblowers alleged this raises questions about the firm's independence and objectivity in judging Tesla's financials.

Persons: Brandon Bell, Elon, Tesla's, Tesla, Musk, Ann Lipton, Lipton, Karen Nelson, Nelson, Nicholas Parks, it's, Oxley, restate financials Organizations: Getty, U.S . Securities, Exchange Commission, SEC, PricewaterhouseCoopers, CNBC . Agency staff, CNBC, Twitter, Tulane Law School, University of Chicago Law School, Securities, Sarbanes, Oxley, Texas Christian University, Public Company, Tesla, Parks, Nelson, Business, Exchange, Board, SpaceX, The Boring, California Alternative Energy, Transportation Financing Authority Locations: Austin , Texas, Tesla, California, U.S, Delaware

Investors are using provisions in Delaware corporate law to demand internal Fox records to investigate how Fox's leaders acted as its Fox News network aired segments on Trump's false claims that he lost the 2020 presidential election due to voter fraud, two sources confirmed. In moves not previously reported, shareholders are looking for records such as board minutes, emails and texts that may contain evidence that Fox directors and executives were derelict by allowing the network to air the false claims. It was not clear how many Fox shareholders are pursuing information demands. Fox has argued that Dominion's case falls short of proving actual malice and its damages request is "untethered from reality." If Fox prevails in the Dominion case, the shareholders' cases would not be as strong, said Ann Lipton, a professor at Tulane University Law School.

An attorney for Musk, as well as Tesla and several directors who are also defendants, declined to comment. Musk surrendered the Tesla chairman position and agreed to let a company lawyer vet some of his tweets. He won a bench trial in Delaware's Court of Chancery last year over claims by Tesla shareholders that he allegedly coerced the Tesla board into buying SolarCity, a rooftop solar panel maker. Tesla shareholders had sought billions in damages and they have appealed. Around half are dismissed for failing to comply with securities law and most of the rest are settled.

☆ Elon Musk says CEOs should tweet more, but his tweets have been a double-edged sword
▼ + stars: | 2022-11-14 | by ( Grace Kay | ) www.businessinsider.com time to read: +5 min

Elon Musk told CEOs on Wednesday to tweet more as it has "worked quite well" for him. But, experts say posting on social media can cause major issues for executives and their brands. Ultimately, legal experts say posting on social media is too risky for most CEOs. Executives' comments on social media could also fail to translate to younger generations with different values and worldviews, said Anat Alon-Beck, a business law professor at Case Western Reserve University. So while Musk may have built up a huge following with his off-the-cusp tweets and jokes, for most CEOs, the risks of tweeting are likely too great.

[1/2] SpaceX Chief Engineer Elon Musk gestures during a joint news conference with T-Mobile CEO Mike Sievert at the SpaceX Starbase, in Brownsville, Texas, U.S., August 25, 2022. REUTERS/Adrees LatifCompanies Twitter Inc FollowTesla Inc FollowWILMINGTON, Del., Nov 7 (Reuters) - As Elon Musk is engulfed in his overhaul of Twitter, the entrepreneur is headed to trial to defend his record $56 billion Tesla Inc pay package against claims it unjustly enriches him without requiring his full-time presence at the carmaker. The disputed pay package allows Musk to buy 1% of Tesla's stock at a deep discount each time escalating performance and financial targets are met; otherwise Musk gets nothing. Does Elon Musk work for the board or does the board work for Elon Musk," said Minor Myers, a professor at UConn School of Law. Myers said if the pay package is rescinded, the board could simply create a new one and do so with McCormick's ruling to guide them.

☆ The clock is ticking for Elon Musk to buy Twitter — and he's running out of time
▼ + stars: | 2022-10-25 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

ET to close his deal with Twitter or a trial date will be set. If Musk becomes Twitter's new owner, Twitter will undergo a chapter of major change and likely layoffs. When Musk initially filed to end the court case and buy the company at the original price, Twitter appeared wary of the billionaire's intentions. The company has said it will not close the deal until Musk can prove he has funding in place. Last week, The Washington Post reported that Musk planned to cut about 75% of the company's staff.

☆ The fate of Elon Musk’s deal to buy Twitter now comes down to the money
▼ + stars: | 2022-10-07 | by ( Clare Duffy | ) edition.cnn.com time to read: +5 min

What everyone is now waiting on: Musk needs to actually have the money to hand over. Much of the sticking point between Musk and Twitter (TWTR) now appears to be over uncertainty around the status of those financing arrangements. Many legal experts think Musk really is planning to close the deal this time, the most certain anyone has sounded since he first said the deal was “on hold” in May and moved to terminate the agreement in July. Musk is likely trying to help Morgan Stanley market the debt to other investors before telling them to hand him the money to close the deal, according to Lipton. According to the merger agreement, Musk could in theory walk away from the deal with a $1 billion breakup payment to Twitter if his debt financing were to fall through.

☆ Elon Musk's trove of private text messages is a bad look for him — and another win for Twitter, experts say
▼ + stars: | 2022-09-30 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

Hundreds of Elon Musk's texts could work against him in his court battle with Twitter, experts say. The messages appear to show Musk was aware of issues with bots ahead of offering to buy the company. The hundreds of texts between Musk and some of Silicon Valley's most powerful players offer fresh insight into Musk's plans for Twitter. But Musk's private texts appear to tell a story that is "in tension with his lead argument," Schettenhelm told Insider. "Purging fake users will make the numbers look terrible, so restructuring should be done as a private company," he texted Taylor, according to the cache of documents released Thursday.

☆ The whistleblower hearing was more of a win for Twitter than Elon Musk in their $44 billion court battle, some experts say
▼ + stars: | 2022-09-15 | by ( Grace Kay | ) www.businessinsider.com time to read: +5 min

Experts told Insider the Twitter whistleblower's hearing did little to aid Elon Musk's legal case. Musk's legal team has amended its countersuit against Twitter to include Zatko's claims. Another avenue for Musk's team could be if the FTC imposes a fine or revisits its 2011 settlement with Twitter. But, Zatko appeared to have no firsthand knowledge of FTC compliance issues in his testimony, experts said. Zatko has been subpoenaed for the $44 billion court battle between Musk and Twitter.

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