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☆ 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

Elon Musk’s brain implant company Neuralink has moved its legal corporate home from Delaware to Nevada after a Delaware judge struck down Musk's $55.8 billion pay package as CEO of Tesla. Neuralink, which has its physical headquarters in Fremont, California, became a Nevada company on Thursday, according to state records. Delaware records also list the company's legal home as Nevada. “Never incorporate your company in the state of Delaware,” he wrote in one post after the court ruling. Musk, a co-founder of the privately held Neuralink, is listed as company president in Nevada documents.

Persons: Elon, Neuralink, Musk, Tesla, ”, “, Erik Gordon, Kathaleen St, Jude McCormick, McCormick, ‘, ’ ” McCormick, Musk’s, shouldn’t Organizations: Tesla, Austin, University of Michigan, Delaware, Musk, Forbes Locations: Delaware, Nevada, Fremont , California, Texas, “ 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

☆ Neuralink exec Shivon Zilis defends Elon Musk's $55 billion Tesla pay package
▼ + stars: | 2024-01-31 | by ( Sarah Jackson | ) www.businessinsider.com time to read: +3 min

Read previewNeuralink director Shivon Zilis is coming to Elon Musk's defense after his Tesla pay package was voided. A Delaware judge on Tuesday swatted down Musk's $55 billion Tesla pay package, siding with a shareholder who argued that Musk's pay as CEO was excessive. She stood by his Tesla compensation package in a social media post on Wednesday. "There are so many anti-meritocratic situations where people take money off the table while destroying shareholder value," Zilis wrote. "Never incorporate your company in the state of Delaware," Musk wrote .

Persons: —, Shivon Zilis, Elon, Kathaleen St, J, McCormick, Musk, Zilis, it's, Tesla Organizations: Service, Tesla's, Business, Bloomberg Locations: Delaware

Even when compared with other CEOs, who routinely get paid roughly 200 times more than their typical employees, Elon Musk’s pay package was eye-opening. Critics have argued for years that CEO pay packages are exorbitant. Under Musk’s pay plan, he received a chunk of stock options each time Tesla’s market value rose by $50 billion. General Motors, for example, considers executive salaries at 3M, Boeing, Ford, IBM and other huge companies, and uses complex formulas to determine CEO compensation. Corporate law experts say any new compensation package for Musk will likely be challenged in court unless Tesla's board either resigns en masse or follows a meticulous process to protect shareholders by passing a substantially smaller package.

Persons: Tesla, Kathaleen St, Jude McCormick, Musk, Bernard Arnault, Critics, Blackstone’s Steven Schwarzman, “, ‘, ’ ” McCormick, Musk’s, shouldn’t, Mary Barra, Jim, Mark Zuckerberg, Tim Cook, they’re, ”, Charles Elson, ” Elson, Elson Organizations: Elon, Musk, Forbes, General Motors, 3M, Boeing, Ford, IBM, Big Tech, University of Delaware, Lawyers Locations: Delaware, —, Barra, U.S

☆ 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

☆ Elon Musk's lawyers are making closing arguments in a trial over his $56 billion pay package that could be decided as soon as today
▼ + stars: | 2023-02-21 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

A judge will hear the closing arguments in a trial over Elon Musk's $56 billion pay plan on Tuesday. A Tesla shareholder has sued Musk and the automaker with the goal of getting the pay plan rescinded. Lawyers for Musk and Tesla investor Richard Tornetta will begin presenting their final arguments on Tuesday at 1:30 p.m. Tornetta aims to get the pay package rescinded. The result of the trial could impact not only Musk's pay package, but his other companies as well, Anat Alon-Beck, assistant professor of law at Case Western Reserve University, previously told Insider.

☆ Elon Musk's trial over his $50 billion pay package at Tesla kicks off today, and the same judge from his Twitter court battle is overseeing the case
▼ + stars: | 2022-11-14 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

Elon Musk's five-day trial in Delaware over his $50 billion Tesla pay package began Monday. A Tesla shareholder has sued Musk and the automaker, alleging his pay plan is unreasonable. Richard Tornetta, the "Dawn of Correction" heavy metal drummer and a Tesla shareholder, sued Tesla and Musk after the compensation plan was instituted in 2018. The company has since surpassed the metrics as its market value surged from $53 billion to over $690 billion, Musk's lawyers said in the court filing. The result of the five-day trial could impact not only Musk's pay package, but his other companies as well, Anat Alon-Beck, assistant professor of law at Case Western Reserve University, told Insider.

☆ Elon Musk's lawyers say his $50 billion Tesla pay package is justified because he's 'not the typical CEO' as a November trial approaches
▼ + stars: | 2022-10-27 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

Elon Musk's lawyers say the billionaire's over $50 billion Tesla compensation plan is justified. Musk faces a trial in November over a lawsuit from an investor regarding his 2018 pay package. The pay plan is structured around Tesla's performance goals and includes over 100 million stock options. The company has since surpassed the metrics as its market value surged from $53 billion to over $690 billion, Musk's lawyers said in the court filing. McCormick presiding over the case — the same judge that has overseen Musk's court battle with Twitter.

☆ 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.

☆ Elon Musk must close Twitter deal by end of this week or face trial
▼ + stars: | 2022-10-24 | by ( Clare Duffy | ) edition.cnn.com time to read: +5 min

New York CNN Business —The clock is ticking for Elon Musk to complete his deal to buy Twitter. ET on Friday to close his $44 billion acquisition of Twitter or face a trial that was previously delayed to allow both parties to close the deal. Musk in April agreed to buy Twitter (TWTR) for $54.20 per outstanding share and then, weeks later, sought to terminate the deal. Bloomberg last week reported that the company had frozen employees’ stock accounts in anticipation of the deal’s closing, and that lawyers for both Musk and Twitter were preparing paperwork to close the deal. Musk, meanwhile, told Tesla shareholders that he was “excited” about Twitter even as he admitted to “obviously overpaying” for it.

☆ Elon Musk is being investigated by federal authorities over the $44 billion Twitter deal, the company said in a court filing
▼ + stars: | 2022-10-14 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +2 min

Elon Musk is being investigated by federal authorities, Twitter said in a court filing. On October 6, Twitter requested that Musk's team hand over any correspondence with federal authorities. In a letter addressed to Judge Kathaleen St. Jude McCormick on October 6, Twitter requested the court compel Musk's team to hand over any correspondence with federal authorities. The company did not specify in the letter the exact focus of the investigation, or which federal authorities were conducting them. After Musk revived his $44 billion bid for Twitter, McCormick gave the Tesla CEO until October 28 to close the deal.

☆ Elon Musk claims whistleblower burned 10 notebooks as part of a Twitter order to destroy sensitive information about the company
▼ + stars: | 2022-10-11 | by ( Grace Kay | ) www.businessinsider.com time to read: +3 min

A whistleblower said he destroyed notebooks and computer files at Twitter's request, per a court filing. Elon Musk requested sanctions against Twitter on October 3, alleging it destroyed evidence. The filing was made public on Monday, but filed the day before Musk made a U-turn on the purchase. Zatko's notes included details from meetings with executives, as well as communications with Twitter CEO Parag Agrawal regarding his concerns over Twitter's security practices, per the court filing. After Zatko's whistleblower complaint became widely reported in August, Musk amended his countersuit against Twitter to include the former security chief's allegations.

☆ 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 was texting Larry Ellison 'into the early morning hours' just before announcing his Twitter purchase was on hold, a new court filing says
▼ + stars: | 2022-09-26 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

Elon Musk texted with Larry Ellison before saying his Twitter deal was on hold, per a court filing. Twitter is arguing Musk's legal team is withholding text messages it subpoenaed related to the deal. Twitter subpoenaed Ellison in August, but the text messages have yet to be publicly filed. In 2018, Ellison was named to Tesla's board of directions and said he was "very close friends with Elon Musk." Twitter's legal team appears to be building a case around some of Musk's texts.

☆ 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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