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☆ US regional banks are still under pressure. That’s likely to continue
▼ + stars: | 2024-04-18 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —Despite overcoming a crisis in 2023, the pain isn’t over for America’s regional banks. Shares of New York Community Bank have tumbled 71%, Bank OZK shares have slid 16% and Webster Financial shares have lost 11%. Regional banks reported wide losses on their profits during the first quarter. PNC projects that its net interest income will fall between 4% to 5% in 2024 from last year. “I’m worried about a handful of [regional banks],” Bair told CNBC on Tuesday.

Persons: that’s, Jerome Powell, “, ” Powell, Sheila Bair, “ I’m, ” Bair, ” Tesla, Tesla, Elon Musk, Chris Isidore, Musk, Chancellor Kathaleen McCormick, Read, Samantha Delouya, —, Maximilian Kotz, Leonie Wenz, Noah Diffenbaugh Organizations: CNN Business, Bell, New York CNN, Regional Banking, New York Community Bank, Bank OZK, Webster Financial, PNC Financial, T Bank, US Bancorp, Citizens, PNC, Valley Bank, Signature Bank, First Republic Bank, Federal Reserve, Wilson Center, Federal Deposit Insurance Corporation, CNBC, Tesla, Securities and Exchange Commission, United Nations, Potsdam, Climate, CNN, Stanford University Locations: New York, Delaware, ” Delaware

☆ Tesla asks shareholders to vote again on Musk's $56 billion payout
▼ + stars: | 2024-04-17 | by ( Rohan Goswami | In Rohangoswamicnbc | ) www.cnbc.com time to read: +2 min

Tesla said Wednesday it will ask shareholders to reinstate CEO Elon Musk's $56 billion pay package, which a Delaware judge voided earlier this year after ruling that the record-setting compensation deal was "deeply flawed." Tesla said the court decision created a "fundamental problem for the company." Tesla has not hired Innisfree since 2018, when it first asked shareholders to vote on Musk's pay package. Musk's pay package was invalidated after a shareholder won a lawsuit against the company earlier this year. The company also noted that "dozens of institutional stockholders" have told Tesla that they disagree with the Tornetta decision.

Persons: Elon Musk, Lola, Tesla, Elon Musk's, Musk, Innisfree, Musk's, Chancellor Kathaleen McCormick, Richard Tornetta, McCormick Organizations: Regency Bruin Theatre, Twitter, Board, Delaware Court Locations: Los Angeles , California, U.S, Delaware, Texas

☆ 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

☆ How Elon Musk's war on Delaware could change the way corporations make some of their biggest decisions
▼ + stars: | 2024-02-14 | by ( Ian Thomas | ) www.cnbc.com time to read: +4 min

It remains to be seen what Tesla will do about Elon Musk's pay just a few weeks after a Delaware judge voided his $56 billion compensation package, the largest CEO pay package in public corporate history. But Musk has already made some big decisions, including a declaration of a war on the state of Delaware. "Never incorporate your company in the state of Delaware" Musk posted on X shortly after the decision. "Put simply, neither the Compensation Committee nor the Board acted in the best interests of the Company when negotiating Musk's compensation plan. But even as those figures have risen, Musk's compensation would be an "outlier among outliers," said Matteo Tonello, managing director at The Conference Board.

Persons: Elon Musk, Tesla, Elon Musk's, Musk, Chancellor Kathaleen McCormick, McCormick, Charles Elson, Todd Maron, Elson, Matteo Tonello Organizations: Elon, Twitter, Fortune, Weinberg, Corporate, Tesla, Company, The Conference Board Locations: Krakow, Poland, Delaware, Texas, Nevada

☆ 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

☆ Elon Musk says Tesla shareholders will vote ‘immediately’ on quitting Delaware for Texas
▼ + stars: | 2024-02-01 | by ( Diksha Madhok | ) edition.cnn.com time to read: +2 min

CNN —Stung by a Delaware court ruling earlier this week that struck down his record Tesla pay package, Elon Musk says he is seeking shareholder approval to incorporate the company in Texas. Soon after Tuesday’s ruling about his 2018 salary package — worth about $51 billion at current stock prices — Musk put up a poll on X asking if Tesla (TSLA) should move its registration from Delaware to Texas, where it is already headquartered. Hours later, the Tesla CEO wrote that the “public vote is unequivocally in favor of Texas.” The poll results showed Texas had won the backing of more than 87% of about 1.1 million votes. Musk added he will now “immediately” seek shareholder approval to incorporate the electric carmaker in the southern state. Delaware is famously one of the world’s most welcoming places for companies of all kinds and sizes to incorporate for legal and tax purposes.

Persons: Elon Musk, Musk, Tesla, “, ”, Chancellor Kathaleen McCormick Organizations: CNN, Texas, Fortune Locations: Delaware, Texas, . Delaware, Nevada

SpaceX, X (formerly known as Twitter), and Tesla CEO Elon Musk speaks during live interview with Ben Shapiro at the symposium on fighting antisemitism on January 22, 2024 in Krakow, Poland. Elon Musk said late Wednesday that Tesla will hold a shareholder vote on whether to transfer the electric carmaker's state of incorporation to Texas. After the poll, Musk said Tesla will "will move immediately to hold a shareholder vote to transfer state of incorporation to Texas." Musk will likely have to seek approval from the Tesla board to enact such a move. "Never incorporate your company in the state of Delaware," Musk posted on X this week.

Persons: Elon Musk, Ben Shapiro, Tesla, Musk, Musk's, Chancellor Kathaleen McCormick Organizations: SpaceX, Tesla, Musk Locations: Krakow, Poland, Texas, Delaware

☆ Highlights of Tesla CEO Elon Musk's court ruling: Mars, Frankenstein, a self-driving car pun
▼ + stars: | 2024-01-31 | by ( Dan Mangan | ) www.cnbc.com time to read: +1 min

Elon Musk, chief executive officer of Tesla Inc., during a fireside discussion on artificial intelligence risks with Rishi Sunak, UK prime minister, not pictured, in London, UK, on Thursday, Nov. 2, 2023. The bombshell, 200-page Delaware court ruling Tuesday ordering Tesla to undo its massive $56 billion compensation package for CEO Elon Musk features descriptions of a lawyer holding back tears, a reference to "Frankenstein" and a cringey self-driving car pun. And then there's a whole section about Mars — the planet — and Musk's belief that he has "a moral obligation" to use his incredible wealth to help colonize it to help "save humanity." That wealth is on track, barring a successful appeal, to be significantly reduced by a ruling issued by Chancery Court Chancellor Kathaleen McCormick. Musk wasn't happy about that Tuesday, tweeting, "Never incorporate your company in the state of Delaware."

Persons: Elon Musk, Rishi Sunak, Tesla, Elon, Chancellor Kathaleen McCormick, Musk, McCormick Organizations: Tesla Inc Locations: London, Delaware

A Delaware judge on Tuesday voided the $56 billion pay package of Tesla CEO Elon Musk, ruling that the company's board of directors failed to prove "that the compensation plan was fair" or show much evidence that they had even negotiated with him. The pay package that Tesla granted Musk in 2018 was the largest compensation plan in public corporate history, McCormick noted in her 200-page ruling. He claims that Tesla, Inc.'s directors breached their fiduciary duties by awarding Elon Musk a performance-based equity-compensation plan." "Put simply, neither the Compensation Committee nor the Board acted in the best interests of the Company when negotiating Musk's compensation plan. But in a tweet late Tuesday afternoon, Musk wrote, "Never incorporate your company in the state of Delaware."

Persons: Elon, Twitter —, Elon Musk, Richard Tornetta, Chancellor Kathaleen McCormick, Tesla, McCormick, Musk, Tornetta, Todd Maron, Grant Organizations: SpaceX, Twitter, New York Times, Tesla, Delaware Supreme Court, Inc, Elon, Company, Musk, CNBC, CNBC PRO Locations: New York City, Delaware

☆ Judge strikes down Elon Musk’s massive, multi-billion-dollar pay package
▼ + stars: | 2024-01-30 | by ( Chris Isidore | ) edition.cnn.com time to read: +5 min

New York CNN —A Delaware state court judge has thrown out the 2018 pay package that helped to make Tesla CEO Elon Musk one of the richest people in the world. He said Tesla investors will benefit from the decision by having the “dilution from this gargantuan pay package erased.”Attorneys for Musk and the Tesla board argued the pay package was approved by a shareholder vote. Excluding the votes owned by Musk and his brother, 73% of the shares voting in that election supported the pay package. The company’s market cap was valued at $54 billion at the time the pay package was approved. Robyn Denholm, the chair of Tesla’s board, testified that the pay package was all about keeping Musk focused on Tesla.

Persons: Elon Musk, Chancellor Kathaleen McCormick, Musk, Tesla, “, ”, Greg Varallo, McCormick, ” Musk, Robyn Denholm, ” Denholm, – CNN’s Matt McFarland Organizations: New, New York CNN, Musk, Delaware Supreme, SpaceX, Twitter, Boring, Tesla Locations: New York, Delaware, . Delaware, Tesla

Once known as Square, Block agreed in March 2021 to pay $306 million for an 87.5% stake in Tidal. The pension fund also said Dorsey, a co-founder of Block and Twitter, was Block's only top executive who supported the purchase, and bought Tidal because he and Jay-Z were friends. But in concluding that Block directors did not breach their fiduciary duties, McCormick said she could not "presume bad faith based on the merits of the deal alone." Jay-Z, the rapper and music mogul whose real name is Shawn Carter, joined San Francisco-based Block's board after the Tidal purchase and remains a director. The Delaware case was a derivative lawsuit that sought to have Block's directors or their insurers pay damages to the company for shareholders' benefit.

[1/2] Tesla vehicles are shown at a Tesla service center in San Diego, California, U.S., January 13, 2023. At Tuesday's closing arguments in a Delaware court, a judge pressed lawyers representing Tesla directors and the investor challenging Musk's pay over whether the company's explosive growth outweighed misleading disclosures about the pay plan in 2018. The pay package contributed to Musk's fortune, the world's second-largest, and has no comparison in the world of executive pay. Tesla investor Richard Tornetta sued Musk and the board in 2018, arguing it unjustly enriched Musk and should be voided. Attorneys for the Tesla directors argued that Tornetta never challenged the main details of the proxy that described the plan, such as the goals Musk had to meet.

☆ Judge to hear final arguments in trial over Musk's $56 billion Tesla pay
▼ + stars: | 2023-02-21 | by ( Tom Hals | Thomson Reuters | Award-Winning Reporter With More Than Two Decades Of Experience In International News | ) www.reuters.com time to read: +2 min

[1/2] Tesla vehicles are shown at a Tesla service center in San Diego, California, U.S., January 13, 2023. REUTERS/Mike BlakeCompanies Tesla Inc FollowWILMINGTON, Del, Feb 21 (Reuters) - Lawyers for Elon Musk and a Tesla Inc (TSLA.O) investor will make closing arguments on Tuesday in a trial over his $56 billion pay package and whether it fueled the electric carmaker's growth or improperly subsidized Musk's dream of one day traveling to Mars. The arguments follow a five-day trial in November that featured testimony from the Tesla chief executive about the origins of the 2018 pay package and whether its performance goals were difficult to achieve and accurately described to investors. Musk, who founded rocket company SpaceX, admitted during his testimony that his pay package provided funds he would use to finance interplanetary travel. His lawyers also argued the pay plan benefited shareholders by increasing the value of their stock 10 times.

☆ Girl Scout mom kicked out of Radio City and barred from seeing Rockettes after facial recognition tech identified her
▼ + stars: | 2022-12-21 | by ( Julianne Mcshane | ) www.nbcnews.com time to read: +5 min

“I was just a mom taking my daughter to see a Christmas show,” she told NBC New York. It’s un-American to do this.”The Rockettes perform at Radio City Music Hall in New York in 2019. The spokesperson added that a sign outside Radio City Music Hall informs visitors that facial recognition technology is among the security measures it has in place. The company spokesperson called its policy “straightforward” and said attorneys at firms pursuing litigation against it are welcome at its venues once the litigation is resolved. New York court records show that there are more than 20 active lawsuits pending against MSG Entertainment and its properties in the state.

[1/2] Elon Musk, Chief Executive Officer (CEO) of SpaceX, Tesla and Twitter, arrives for a trial about his Tesla pay package at the Delaware Court of Chancery in Wilmington, Delaware, U.S., November 16, 2022. "The amount of pain, no words can express," Musk testified on Wednesday. The package allows Musk to buy 1% of Tesla's stock at a deep discount each time escalating performance and financial targets are met. "It wasn't a knock-down, drag-out affair," Todd Maron testified about the pay talks in 2017 when he was general counsel. You could almost make an argument they didn't pay him enough because he ran off after Twitter."

☆ Tesla’s close-knit leadership team goes under the spotlight in court
▼ + stars: | 2022-11-17 | by ( Matt Mcfarland | ) edition.cnn.com time to read: +6 min

Tornetta accuses Tesla’s board of breaching its duties to shareholders. The pay package from Tesla’s board granted Musk large sums of shares every time Tesla hit certain milestones, including earnings and share price targets. In this sketch, former Tesla board member Antonio Gracias testifies in court. Ehrenpreis also had the rights to the first Model 3, Tesla’s breakout product, but gave it to Elon Musk as a birthday gift. Ehrenpreis is also the Tesla board member who asked consultants if hypothetically Tesla could lower the disclosed costs of Musk’s compensation plan.

☆ Musk says he was focused on reviving Tesla, defends $56 billion pay
▼ + stars: | 2022-11-16 | by ( Tom Hals | Hyunjoo Jin | ) www.reuters.com time to read: +4 min

Elon Musk, Chief Executive Officer (CEO) of SpaceX, Tesla and Twitter, arrives to a trial regarding his Tesla pay package at the Delaware Court of Chancery in Wilmington, Delaware, U.S., November 16, 2022. Tesla shareholder Richard Tornetta sued Musk and the board in 2018 and hopes to prove that Musk used his dominance over Tesla’s board to dictate terms of the package, which did not require him to work at Tesla full-time. Musk, the world’s richest person, described how the automaker was struggling to survive in 2017, when the pay package was developed. The legal team for Musk and the Tesla directors have cast the pay package as a set of audacious goals that worked by driving 10-fold growth in Tesla’s stock value, to more than $600 billion from around $50 billion. The disputed Tesla package allows Musk to buy 1% of Tesla’s stock at a deep discount each time escalating performance and financial targets are met.

☆ Musk says he made some Tesla decisions without board nod, defends $56 billion pay
▼ + stars: | 2022-11-16 | by ( Tom Hals | Hyunjoo Jin | ) www.reuters.com time to read: +5 min

WILMINGTON, Del (Reuters) -Elon Musk said in court on Wednesday that he made some Tesla Inc decisions without the approval of the company’s directors, as he defended his $56 billion pay package against claims that he dictated its terms to a compliant board. Questioned by Tornetta’s lawyer, Greg Varallo, Musk rejected claims that his pay package goals were easy to achieve. An email from May 2017 appeared to establish that Musk was pushing for the pay plan months before the board negotiated it with him. Antonio Gracias, a venture capital investor and longtime friend of Musk who was also a Tesla board member from 2007 to 2021, took the stand after Musk testified. The disputed Tesla package allows Musk to buy 1% of Tesla’s stock at a deep discount each time escalating performance and financial targets are met.

☆ Amid Twitter turmoil, Musk arrives in court for $56 billion Tesla pay trial
▼ + stars: | 2022-11-16 | by ( Tom Hals | ) www.reuters.com time to read: +3 min

On Monday and Tuesday, the court got a taste of Musk’s testimony through short clips from his 2021 deposition in the litigation. In one clip, Musk dismissed the idea that the board should have discussed requiring that he spend more time with Tesla. The disputed Tesla package allows Musk to buy 1% of Tesla’s stock at a deep discount each time escalating performance and financial targets are met. Tesla has hit 11 of the 12 targets, according to court papers. The Musk case survived a motion to dismiss because it was determined he might be considered a controlling shareholder, which means stricter rules apply.

☆ Amid Twitter turmoil, Musk takes stand in $56 billion Tesla pay trial
▼ + stars: | 2022-11-16 | by ( Tom Hals | ) www.reuters.com time to read: +3 min

In one clip, Musk dismissed the idea that the board should have discussed requiring that he spend more time with Tesla. He apologized from the stand to a British diver who he called “pedo guy” in a tweet and who sued Musk for defamation. The disputed Tesla package allows Musk to buy 1% of Tesla’s stock at a deep discount each time escalating performance and financial targets are met. Tesla has hit 11 of the 12 targets, according to court papers. The Musk case survived a motion to dismiss because it was determined he might be considered a controlling shareholder, which means stricter rules apply.

Tesla shareholder Richard Tornetta sued Musk and the board in 2018 and hopes to prove that Musk used his dominance over the electric vehicle maker's board to dictate terms of the package, which did not require him to work at Tesla full-time. In one clip, Musk dismissed the idea that the board should have discussed requiring that he spend more time with Tesla. He apologized from the stand to a British diver who he called "pedo guy" in a tweet and who sued Musk for defamation. The disputed Tesla package allows Musk to buy 1% of Tesla's stock at a deep discount each time escalating performance and financial targets are met. The Musk case survived a motion to dismiss because it was determined he might be considered a controlling shareholder, which means stricter rules apply.

They argued the pay package did what it aimed to do -- ensure the entrepreneur successfully guided Tesla through a critical period which helped drive the stock 10-fold higher. The Tesla shareholder lawsuit argues that the pay package should have required Musk to work full time at Tesla. In all, 19 witnesses are scheduled, including directors and executives from 2018, compensation experts and advisors who helped craft the pay package. Tesla has hit 11 of the 12 targets as its value ballooned briefly to more than $1 trillion from $50 billion, according to court papers. A decision will likely take around three months after the trial and could be appealed to the Delaware Supreme Court.

Twitter logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. Musk's deposition is expected to be a key part of the litigation. read moreTwitter's attorneys are expected to try to show that Musk abandoned the deal due to falling financial markets. Twitter wants McCormick to order Musk to close the deal at the agreed price of $54.20 per share. The billionaire is seeking a ruling that Twitter violated the deal agreement by withholding critical information about users, allowing Musk to walk away without penalty.

☆ Delaware court denies Musk request to delay Twitter trial
▼ + stars: | 2022-09-07 | by ( Lauren Feiner | ) www.nbcnews.com time to read: +2 min

A Delaware court denied Elon Musk’s request to delay the trial over his attempt to abandon a $44 billion deal to buy Twitter, according to a new filing released on Wednesday. But the billionaire Tesla CEO will be allowed to add claims from a Twitter whistleblower to his countersuit, Chancellor Kathaleen McCormick ruled. The trial is expected to begin on October 17, earlier than the mid-November date Musk’s team requested in its latest push. “I previously rejected Defendants’ arguments in response to Twitter’s motion to expedite, making clear that the longer the delay until trial, the greater the risk of irreparable harm to Twitter,” McCormick wrote. Musk’s lawyers asked to add claims related to the whistleblower complaint recently made public by Twitter’s former head of security, Peiter “Mudge” Zatko.

The complaints, obtained by CNBC, were filed by nonprofit law firm Whistleblower Aid, which is representing Twitter's former head of security, Peiter "Mudge" Zatko. Whistleblower Aid, which also represented Facebook whistleblower Frances Haugen, verified the authenticity of the documents with CNBC. A Twitter whistleblower is alleging "extreme, egregious deficiencies by Twitter" related to privacy, security and content moderation, according to complaints filed with the Securities and Exchange Commission, Federal Trade Commission and Department of Justice. If government regulators were to find Twitter misled consumers about its security protocols, that may be considered a violation of its 2011 agreement with the FTC. At the time, Twitter was barred for 20 years from misleading consumers about how it protects their security and private information.

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