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☆ They blocked Elon Musk’s massive payday. Now they want $7 billion for it
▼ + stars: | 2024-07-09 | by ( ) edition.cnn.com time to read: +3 min

The legal fee represents a cut of the value that the plaintiff’s lawyers say was created for Tesla by a Delaware judge’s January ruling that rescinded Musk’s $56-billion pay package. The Musk case took a dramatic turn when Tesla shareholders in June voted to ratify Musk’s pay, which Tesla has argued corrected the flaws in the 2018 process that McCormick identified in her ruling. The company argues that Musk’s pay package has been restored and that Tornetta’s legal victory has been transformed into a loss. McCormick may take weeks or months to rule on the legal fee. The Delaware Supreme Court is considering a $267 million fee request in a shareholder class action involving Dell Technologies and that decision could provide fee guidance.

Persons: Elon Musk’s, Richard Tornetta, Tornetta, John Reed, ”, Chancellor Kathaleen McCormick, Bernstein Litowitz Berger, Grossmann, Greg Varallo, Tesla, Varallo, ” Varallo, Reed, McCormick Organizations: Delaware CNN, Tesla, Musk’s, Enron, Stanford Law School, Delaware Supreme, Dell Technologies Locations: Wilmington, Delaware

☆ Lawyers seek nearly $6 billion in Tesla stock after getting Musk pay package struck down
▼ + stars: | 2024-03-02 | by ( David Ingram | Lora Kolodny | ) www.cnbc.com time to read: +4 min

The lawyers had earlier convinced the Delaware chancery court to revoke Musk's $56 billion pay package from 2018, with the judge ruling that Tesla's board of directors failed to prove it was fair to shareholders. The lawyers represent former heavy metal drummer Richard Tornetta, who filed the suit on behalf of his fellow Tesla investors. The lawyers are asking for just over 11% of the Tesla shares that would have gone to Musk, or slightly more than 29.4 million shares. Taking their pay in Tesla shares demonstrates they are prepared to "eat our cooking," the lawyers wrote. Musk's pay package was the largest ever disclosed in corporate America, according to Delaware Chancery Court Judge Kathaleen McCormick's 200-page ruling.

Persons: Elon Musk, BARTOSZ SIEDLIK, Elon, paydays, Richard Tornetta, Greg Varallo, Bernstein Litowitz Berger, Grossmann ., Tesla, Kathaleen McCormick's, Musk Organizations: European Jewish Association, Getty Images, Enron, Musk's, Tesla, Grossmann, Musk Locations: Krakow, AFP, Delaware, New York, America, Texas

☆ 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

A judge just voided Elon Musk's $55 billion Tesla pay package. The ruling, which Tesla can appeal, threatens Musk's spot as the richest person in the world. AdvertisementElon Musk's wealth is facing a potential financial hit after a Delaware judge struck down the billionaire's $55 billion Tesla pay package on Tuesday, voiding the record-setting executive compensation plan. Without the $51.1 billion compensation plan, Musk's net worth would drop to roughly $154 billion, knocking him down several notches on the current list of the world's richest people, Bloomberg reported. His pay package centers around 304 million stock options in 12 tranches tied to a series of goalposts around the carmaker's financial growth, BI previously reported.

Persons: Tesla, —, Elon, Musk, Jeff Bezos, He's, Bernard Arnault, tranches, Richard Tornetta, Greg Varallo, Delaware — Elon, Angela Reddock, Wright, Cynthia Augello, Joshua Tyler White, they're, They've Organizations: Elon Musk's, Bloomberg, Service, New York Times, SEC, Vanderbilt Locations: Delaware, French, Los Angeles, New York, China

☆ 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

[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.

Musk, who is expected to be called as a witness in San Francisco federal court this week, has built a cult-like following for his irreverent humor, marketing skills and vision. Legal experts said a jury trial can turn on a key witness and the attorney who questions Musk needs to establish control, minimizing Musk's ability to use his charisma. In the current case, Musk sat for a daylong deposition in 2021 with lead shareholder attorney Nicholas Porritt. The jury is likely to see the "greatest hits" from that interview, according to trial attorney Renato Mariotti, who is not involved in the case. Reporting by Tom Hals in Wilmington, Del., and Jody Godoy in San Francisco; Editing by Noeleen Walder and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ Elon Musk says 50 Tesla software engineers brought in to review Twitter's code had volunteered for the job
▼ + stars: | 2022-11-17 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

Elon Musk told a court that 50 Tesla engineers working at Twitter weren't "Tesla assets." He said that's because the Tesla staff had volunteered to work at the company after-hours. Musk was testifying over a shareholder lawsuit which says his $55 billion pay package was excessive. When questioned if it was a good idea to use Tesla resources at Twitter, Musk said he "didn't think of this as using Tesla assets." Musk — who is the CEO of both Tesla and SpaceX, and is acting as CEO at Twitter — was in court over a Tesla shareholder lawsuit.

☆ 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 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.

☆ 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.

☆ Questions about Elon Musk's Twitter takeover bleed into his pay-package trial, annoying Musk: 'Are we in the Tesla trial or Twitter trial?'
▼ + stars: | 2022-11-16 | by ( Grace Kay | ) www.businessinsider.com time to read: +4 min

The billionaire was sued by a shareholder over his $50 billion Tesla compensation package. Musk appeared annoyed with questioning and asked, "Are we in the Tesla trial or Twitter trial?" "Are we in the Tesla trial or Twitter trial? "We're in cross examination in an interesting case Mr. Musk," Varallo said. Musk is facing a lawsuit from Tesla shareholder Richard Tornetta over his $50 billion Tesla compensation package.

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.

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