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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

Tesla tries again on Musk’s record pay packageNearly three months ago, a Delaware court voided Elon Musk’s multibillion-dollar pay package that Tesla’s board — and most shareholders — had given him in 2018, contending that the process to decide it was “deeply flawed” and that the company didn’t properly disclose it to investors. On Wednesday, Tesla said that it would ask shareholders to vote again on that same pay package, now valued at about $47 billion, at its annual meeting on June 13. The company’s board is effectively asking shareholders, now armed with all of the information that was revealed about the negotiations in court, to make the court’s ruling moot. The vote is likely to set off a bitter battle among investors and governance experts over whether shareholders should provide Musk with the richest pay package in U.S. corporate history. It comes as Tesla faces new challenges, especially slumping sales that have erased billions off its market value in recent months.

Persons: Tesla, Elon Musk’s, — Locations: Delaware

☆ Why Tesla wants to give Elon Musk a $55 billion pay package
▼ + stars: | 2024-04-17 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

Tesla is seeking shareholder approval for Elon Musk's pay package, which a judge previously struck down. AdvertisementWhy does Tesla's board think Elon Musk deserves a $55 billion pay package? Tesla plans to ask shareholders to vote again on Musk's $55 billion pay package after it was struck down by a Delaware Judge earlier this year. Tesla shareholders will be able to vote on the issue during the company's annual meeting in June. Musk does not receive a salary from Tesla and his pay package centered on a series of goalposts around the carmaker's financial growth, initially set in place in 2018.

Persons: Tesla, —, Elon, Robyn Denholm, Denholm, Kathleen St, J, McCormick, Musk Organizations: Elon, Service, Delaware Judge, Securities and Exchange Commission, Delaware Court, Tesla, The New York Times Locations: Delaware, Texas

☆ Tesla will ask shareholders to vote again on Elon Musk's mammoth $47 billion pay package months after it was voided in court
▼ + stars: | 2024-04-17 | by ( Pete Syme | ) www.businessinsider.com time to read: +1 min

Elon Musk's mega pay packet will be taken back to Tesla shareholders for another vote. The $47 billion package, first approved in 2018, was voided by a Delaware court in January. A statement filed with the SEC Wednesday says Musk hasn't been paid for his work at Tesla in six years. AdvertisementTesla will ask shareholders to vote again on Elon Musk's enormous pay package, which was previously overturned by a court. The carmaker announced its plans for another vote in a proxy statement filed with the Securities and Exchange Commission on Wednesday.

Persons: Elon, hasn't, —, Tesla Organizations: SEC Wednesday, Service, Elon, carmaker, Securities and Exchange Commission, Delaware Court, Business Locations: Delaware

☆ Tesla can turn around its 'trainwreck' quarter if Elon Musk stops his distractions and takes back control, Wedbush's Dan Ives says
▼ + stars: | 2024-04-04 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Elon Musk could turn around Tesla's 'trainwreck into a brick wall," Wedbush's Dan Ives said. But better days ahead will hinge on Musk reining in his distractions and retaking control, Ives said. AdvertisementTesla may be able to turn things around after seeing a "nightmare" first quarter, according to Wedbush's Dan Ives. That's made the first quarter an "unmitigated disaster" for Tesla, Ives said in a recent note, also describing the last quarter as a "black eye" and a "trainwreck into a brick wall" for Tesla. In terms of 1Q, this was just a massively soft quarter," Ives said to BNN Bloomberg on Wednesday.

Persons: Elon, Wedbush's Dan Ives, Tesla, Ives, —, That's, We've, BNN, It's, Elon Musk's, Musk, Wedbush, Wells Organizations: Service, Tesla, BNN Bloomberg, Elon, JPMorgan Locations: China, Texas, Delaware, Wells Fargo

☆ Ex-Stability AI leader says being a CEO sucks: 'Elon was right'
▼ + stars: | 2024-04-01 | by ( Ana Altchek | ) www.businessinsider.com time to read: +5 min

Read previewStability AI's former leader Emad Mostaque thinks Elon Musk was right about one thing: being a CEO isn't fun. Mostaque stepped down in March as CEO of Stability AI, the company behind the popular AI image generator Stable Diffusion. When asked about his departure, Mostaque told New York Times reporter Kevin Roose that "being a CEO sucks." The former Stability CEO also said he has Asperger's and ADHD in Reddit threads addressing his tenure as CEO, which he said made the role more difficult for him. Stability AI declined to comment on Mosaque's comments about being a CEO.

Persons: —, Emad Mostaque, Elon Musk, Mostaque, Kevin Roose, Elon, Musk, Lex, –, Peter Diamandis, it's, Forbes, Jensen Huang, Jensen Organizations: Service, Business, New York Times, Delaware Court, Tesla, Bloomberg, Nvidia, Forbes Locations: Stability

☆ FTX estate selling majority stake in AI startup Anthropic for $884 million, with bulk going to UAE
▼ + stars: | 2024-03-25 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +2 min

Bankrupt crypto exchange FTX has struck a deal with a consortium of buyers to sell the majority of its stake in artificial intelligence startup Anthropic for $884 million, according to a filing submitted late Friday to a Delaware court. That group is purchasing nearly $500 million worth of Anthropic shares. Multiple sovereign wealth funds were reportedly clamoring for a piece of FTX's Anthropic stake. Jane Street's head of quantitative research, Craig Falls, has also proposed to personally buy around $20 million worth of shares. Should it be approved, the sale would collectively account for nearly two-thirds of FTX's shares in Anthropic.

Persons: Jane Street, Sam Bankman, Fried, Caroline Ellison, Jane Street's, Craig, John Dorsey Organizations: Investment Co, United, United Arab Emirates, CNBC, Alameda Research, Venture, HOF Capital, Ford Foundation, Fidelity Management Locations: Delaware, United Arab, Saudi Arabia, UAE, Craig Falls, Anthropic

☆ Potential Obstacle to Trump Media’s Merger Appears to Have Been Cleared
▼ + stars: | 2024-03-09 | by ( Matthew Goldstein | ) www.nytimes.com time to read: +1 min

The threat of a last-minute obstacle to the merger of former President Donald J. Trump’s social media company and a cash-rich shell company appears to have subsided. Two early founders of Trump Media & Technology Group reached a temporary truce with Mr. Trump’s company at a hearing on Saturday morning in Delaware Court of Chancery. The lawsuit, filed on Feb. 28 by a company controlled by Wes Moss and Andy Litinsky, had the potential to delay a scheduled March 22 vote by shareholders of Digital World Acquisition Corp. on the long-delayed merger with Trump Media. If shareholders approve the merger, it would give Trump Media more than $300 million in badly needed cash to keep operating. The deal would also boost Mr. Trump’s net worth by more than $3 billion, based on Digital World’s current stock price.

Persons: Donald J, ’, Wes Moss, Andy Litinsky Organizations: Trump Media & Technology Group, Truth, Digital, Trump Media Locations: Delaware Court

☆ Elon Musk's wealth is down by almost $40 billion this year — and it's only March
▼ + stars: | 2024-03-07 | by ( Polly Thompson | ) www.businessinsider.com time to read: +2 min

The Tesla CEO's wealth has dropped by almost $40 billion since the start of 2024. The EV maker's sagging stock price has taken its toll on Musk's net worth. The Tesla CEO's net worth has plunged by almost $40 billion this year, according to the Bloomberg Billionaires Index. AdvertisementThe LVMH chief is worth $197 billion, $1 billion more than Bezos, after adding $18 billion to his worth this year. Most of Musk's wealth comes from his 21% stake in the EV maker.

Persons: Elon, —, Jeff Bezos, He's, Bernard Arnault, it's, Arnault, Musk Organizations: Service, Tesla, Bloomberg Locations: China, Delaware

☆ Lawyers who sunk Elon Musk's big pay package are now asking for nearly $6 billion worth of Tesla stock. Musk doesn't seem happy.
▼ + stars: | 2024-03-02 | by ( Lloyd Lee | ) www.businessinsider.com time to read: +1 min

Lawyers for a Tesla shareholder successfully sunk Elon Musk's $56 billion pay package from Tesla. Now they're asking a judge for about 11% of the Tesla shares, worth about $6 billion, for attorneys fees. AdvertisementLawyers for a Tesla shareholder successfully argued in a Delaware court that Elon Musk doesn't deserve a $55-billion compensation package for his work at the EV company. Instead, some of that compensation package should go to them in attorney fees, the lawyers argued to a Delaware judge. That amounts to about $5.96 billion worth of Tesla shares based on the current price of the company's stock at $202.64 per share.

Persons: Musk, —, Elon Organizations: Elon Musk's, Tesla, Service, EV, Business Locations: Delaware

☆ Trump Media sued by co-founders ahead of DWAC merger, potential setback for lucrative deal
▼ + stars: | 2024-02-29 | by ( Dan Mangan | ) www.cnbc.com time to read: +4 min

Donald Trump (R) and producer Andy Litinsky (L) attend the Comedy Central Roast Of Donald Trump at the Hammerstein Ballroom on March 9, 2011 in New York City. The partnership, United Atlantic Ventures alleges that Trump Media & Technology Group engaged in "wrongful 11th hour ... maneuvering" to dilute UAV''s minority stake in the media company, a court filing says. Donald Trump attends the 'Celebrity Apprentice' Red Carpet Event at Trump Tower on January 5, 2015, in New York City. "They actually went out and did the work, they created Truth Social, and now the beneficiary of that, Donald Trump, doesn't want to pay." CNBC has requested comment from spokesmen for Trump, TMTG and DWAC about the lawsuit, which was first reported by The Washington Post.

Persons: Donald Trump, Andy Litinsky, Moss, Wes Moss, Trump, Jean Carroll, Christopher Clark, Clark, Donald J, TMTG, UAV's, TMTG's Organizations: Trump Media, Twitter, Facebook, United Atlantic Ventures, Trump Media & Technology Group, Trump Tower, Trump, Republican, TMTG, CNBC, The Washington Post, Securities and Exchange Commission, Department of Justice, SEC Locations: New York City, TMTG, Delaware, New York, partnership's Delaware

☆ Elon Musk may be done with Delaware, but don't expect other corporations to follow his crusade
▼ + stars: | 2024-02-21 | by ( Kelsey Vlamis | ) www.businessinsider.com time to read: +3 min

Elon Musk has had it with Delaware — but don't expect other corporations to flee the business-friendly state, too. Musk also specifically went after the judge who ruled to void his pay package, Kathleen McCormick, calling her an "activist and politician" in an X post. "The reason Elon Musk frequently escapes account from other judges is because they don't see through his phantabulating," Lauren Pringle, editor of the Chancery Daily, which covers Delaware courts, told the outlet. Advertisement"I don't expect a mass migration of firms from Delaware," Michal Barzuza, a professor at the University of Virginia who researches corporate law and governance, told the Post. So, despite Musk's latest crusade against the state, it seems unlikely many other Delaware-based corporations will jump ship anytime soon.

Persons: Elon Musk, Musk, Lawrence Cunningham, Kathleen McCormick, McCormick, Lauren Pringle, Michal Barzuza, John Coates, Fortune, there's, Coates, Musk's Organizations: SpaceX, Business, Fortune, Markel Group, Constellation Software, Washington Post, Chancery, University of Virginia, Harvard Locations: Delaware, Texas

☆ Tesla’s Chair Under Scrutiny for Oversight of Elon Musk
▼ + stars: | 2024-02-15 | by ( Natasha Frost | Jack Ewing | ) www.nytimes.com time to read: +1 min

Elon Musk, the chief executive and public face of Tesla, is constantly making news and broadcasting his opinions on his social media site, X. To some analysts and investors, Ms. Denholm is the “adult in the room” who has helped Mr. Musk turn Tesla into the world’s most valuable automaker. But to her critics, she has failed at her most important job: serving as a check on Mr. Musk. Late last month, a Delaware judge sharply criticized Ms. Denholm’s leadership while striking down Mr. Musk’s 2018 compensation package, which is worth more than $50 billion. Ms. Denholm took a “lackadaisical approach to her oversight obligations” at Tesla, said Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery.

Persons: Elon Musk, —, Robyn M, Denholm, Musk, Musk’s, Kathaleen St, J . McCormick Locations: Australia, Delaware

☆ 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

☆ Jeff Bezos is just $8 billion away from overtaking Elon Musk to become the world's wealthiest person once more
▼ + stars: | 2024-02-05 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Jeff Bezos is not far off overtaking Elon Musk to become the world's richest person once more. AdvertisementJeff Bezos is only about $8 billion away from overtaking Elon Musk as the world's wealthiest person following a surge in Amazon stock — and a slump for Tesla — this year. Meanwhile, Musk holds about 411 million Tesla shares, or a roughly 13% stake in the automaker, worth about $76 billion. It's certainly striking that Musk's net worth has crashed from about $340 billion at its peak in late 2021 to about $200 billion today. However, Tesla stock is still up more than six-fold since the start of 2020, while Amazon shares have less than doubled.

Persons: Jeff Bezos, Elon Musk, Mark Zuckerberg, Warren Buffett, —, Tesla, Bezos, Musk, Mark Zuckerberg's, Buffett, Larry Ellison, Larry Page, Sergey Brin, Brin Organizations: Elon, Bloomberg, Service, Tesla, Amazon, SpaceX, Twitter, Big Tech, Meta, Berkshire Hathaway Locations: Delaware, Berkshire

☆ Why parts of the ‘Magnificent 7’ are losing their luster
▼ + stars: | 2024-02-03 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +6 min

After turbocharging late 2023's stock market rally, some of the " Magnificent 7 " technology darlings are looking less magnificent this year. Shares of Meta and Nvidia are leading the Magnificent 7 for the year, with both stocks jumping roughly 34% each. The rest of the Magnificent 7 stocks, however, have received anywhere from 70% to 85% buy rating consensus. While the other five are forecast to see at least double-digit earnings growth estimates, analysts predict Apple's earnings growth to stay relatively unchanged. On the other hand, consensus estimates call for Tesla earnings to fall by 20%.

Persons: turbocharging, Tesla, Art Hogan, Hogan, Baird, Elon Musk's, Ben Kallo, Tim Long, Piper Sandler, Harsh Kumar, Charles Schwab, Kevin Gordon, Gordon, Ed Yardeni, isn't, Yardeni, Russell, Fred Imbert Organizations: Nvidia, Meta, Microsoft, Apple, Wall Street, Riley Wealth Management, CNBC, BYD, Barclays, Blips, Yardeni Research, titans Locations: Delaware, China

☆ The Tesla shareholder who denied Musk his $55 billion payday is a former heavy metal drummer
▼ + stars: | 2024-02-02 | by ( Tom Carter | ) www.businessinsider.com time to read: +2 min

Richard Tornetta sued Tesla in 2018 over Elon Musk's $55 billion compensation plan. The Tesla shareholder is a former heavy metal drummer for the thrash-metal band Dawn of Correction. A Judge sided with Tornetta and struck down the pay package, calling it unfair to shareholders. AdvertisementThe Tesla shareholder who won a dramatic legal victory that denied Elon Musk his $55 billion compensation package used to be a heavy metal drummer. The EV maker will need to develop a new compensation plan for Musk, although it can appeal.

Persons: Richard Tornetta, Tesla, —, Elon Musk, of, Musk, Tornetta, Kimbal Organizations: Elon Musk's, Service, YouTube, Reuters, Business Locations: Delaware, Texas

Elon Musk wants Tesla investors to decide on moving the company's corporate listing to Texas after a Delaware court decided he shouldn't get a multibillion-dollar pay package. The electric car company's CEO said early Thursday that Tesla would get shareholders to vote on whether to switch its corporate registration to Texas, where its physical headquarters is located. “Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas,” Musk wrote on his social media platform X, formerly known as Twitter. Musk had polled X users earlier on the same question, with 87.1% of 1.1 million respondents voting yes. “The public vote is unequivocally in favor of Texas!” he wrote.

Persons: Elon, Tesla, ” Musk, Musk, ”, “ Organizations: Twitter Locations: Texas, Delaware, Nevada

☆ 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

☆ 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

☆ Elon Musk’s $50 Billion Tesla Pay Was Struck Down. What Happens Next?
▼ + stars: | 2024-01-31 | by ( Jack Ewing | Peter Eavis | ) www.nytimes.com time to read: +1 min

Tesla and Mr. Musk could appeal the court decision. Mr. Musk has also indicated that he might seek to incorporate the company in another state that he believes could be more hospitable to businesses, like Texas. What happens to Mr. Musk’s stock options? As part of a compensation package Tesla finalized in 2018, Mr. Musk received options to buy 304 million shares that are now worth more than $50 billion. While he has met the goals needed to receive those options, Mr. Musk does not appear to have converted them into shares of Tesla.

Persons: Elon, Kathaleen St, J . McCormick, Tesla, Musk Organizations: Tesla, Mr Locations: Delaware, Texas

☆ Why Elon Musk's battle with Delaware is about more than a $55 billion pay package
▼ + stars: | 2024-01-31 | by ( Hasan Chowdhury | ) www.businessinsider.com time to read: +7 min

Musk's Tesla pay was structured without a salary to involve 12 stock option awards that would only be given once performance goals for each of them were met. Though Musk can appeal the decision, there are signs that this battle is about more than just the massive pay package that has propelled him to a $205 billion fortune. The carmaker is currently worth $600 billion, up from roughly $50 billion in 2018, when Musk received his pay plan. So it's reasonable to take Musk at face value when he says his Tesla pay, as McCormick put it, is a "means of bankrolling that mission." Closer to home, Musk's legal battle could trigger a rethink of where Corporate America goes to do business.

Persons: —, Elon, Thomas Jefferson, Tesla, Richard Tornetta —, Musk, Judge Kathaleen McCormick, Musk's Tesla, Chandan Khanna, …, Judge McCormick, McCormick, DealBook, that's Organizations: Service, The, The Diamond State, Business, SpaceX, Toyota, Delaware Inc, Corporate America Locations: Delaware, The Diamond, Tesla, Mars, America's, America, Nevada, Texas

☆ Elon Musk’s Tesla Pay Package Is Voided by Judge
▼ + stars: | 2024-01-30 | by ( Jack Ewing | Peter Eavis | ) www.nytimes.com time to read: +1 min

Elon Musk, the chief executive of Tesla, suffered a stunning rebuke Tuesday when a Delaware judge voided the pay package that helped make him a billionaire many times over and the world’s wealthiest human being. In a decision that cast a harsh light on the behavior of Mr. Musk and Tesla’s board of directors, Chancellor Kathaleen St. J. McCormick of the Delaware Court of Chancery said the chief executive had effectively overseen his own compensation plan with the help of compliant board members. “The process leading to the approval of Musk’s compensation plan was deeply flawed,” the judge said. She ordered that the contract that gave Mr. Musk “the largest potential compensation plan in the history of public markets” be voided, and told parties in the case to work out how Mr. Musk would return excess pay. Some compensation experts said the decision would send a warning to other companies that awarded their top executives very large pay packages.

Persons: Elon Musk, Tesla, Chancellor Kathaleen St, J . McCormick, Musk Organizations: Chancery Locations: Delaware

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