Global News

Breaking news & current latest Canadian news headlines; national weather forecasts & predictions, local news videos, money and financial news; sports stats and scores.

https://globalnews.ca/

Judge to decide if Musk’s $56B pay package from Tesla justifies company growth.

Click to play video: 'Twitter’s future uncertain amid internal chaos, ultimatum from Elon Musk'

After an internal crisis within Twitter this week — that may result in hundreds of its employees leaving their jobs, decimating Twitter’s already beleaguered workforce — reports emerged that an external incident was also brewing. And it was projected right on the face of the now-closed Twitter office in San Francisco.

After five days of testimony, including three hours from Elon Musk, a Delaware judge will now decide whether Musk’s $56 billion pay package from Tesla Inc was justified by the company’s explosive growth or undermined by a flawed process.

Musk and the Tesla TSLA.O directors named as defendants repeatedly testified that the package achieved what it set out to do — deliver 10-fold growth in the company’s stock price, enriching investors and Musk.

“We thought if we could pull this off, if this plan was executed, Tesla would be one of the most valuable technology companies,” Antonio Gracias, a Tesla board member from 2007 to 2021, told the Delaware Court of Chancery on Wednesday. “It was a great deal for the shareholders.”

The trial seeks to resolve claims by shareholder Richard Tornetta that the 2018 pay package was dictated by Musk, the world’s richest person, to subservient directors and approved by a vote of shareholders who were misled by Tesla.

The trial wrapped up on Friday, as Musk struggles to oversee a chaotic overhaul of Twitter Inc, which he was forced to buy for $44 billion in a separate legal battle before the same judge, Chancellor Kathaleen McCormick.

“My sense is that even though it went all the way to trial, a ruling is going to favor Mr. Musk,” said Eric Talley, a professor at Columbia Law School who has followed the case.

It will be months before McCormick rules and her decision can be appealed to the Delaware Supreme Court.

During the week-long trial, directors said the pay package was meant to ensure Musk guided the electric vehicle maker through a critical phase when he could have focused on his rocket company SpaceX or tunneling venture The Boring Co.

Musk told the board he wanted a huge package to finance his dream of travel to Mars, or as he testified, to make “life multi-planetary in order to ensure the long-term survival of consciousness.”

Musk described his efforts to push the company from the brink of failure in 2017 to exponential growth. “The amount of pain, no words can express,” Musk testified on Wednesday.

Gracias recalled that Musk celebrated his birthday in a factory conference room with a grocery store cake. “This was all hands on deck, 24/7, brutal,” he told the court.

The 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.

Tesla has hit 11 of the 12 targets as its value ballooned briefly to more than $1 trillion from $50 billion.

Tornetta wants the plan rescinded and the stock granted under the plan returned to Tesla.

Much of the trial focused on the information provided to shareholders before they approved the plan. Tornetta’s lawyers tried to show Tesla concealed that three targets of the package were likely to be quickly met.

The plaintiff portrayed the directors as personal friends or business partners of Musk, who was the link to their wealth.

The directors tried to show they could hold the line against Musk’s demands. But evidence of extracting concessions was limited to the best method for accounting for the stock grants and a requirement that Musk had to hold his stock for five years.

“It wasn’t a knock-down, drag-out affair,” Todd Maron testified about the pay talks in 2017 when he was general counsel.

Talley said Musk is a unique CEO and his pay reflects that.

“He’s like a Labrador retriever. He sees a ball and he runs after it. You could almost make an argument they didn’t pay him enough because he ran off after Twitter.”

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Daniel Wallis)

TwitterElon MuskTeslaelon musk twitterelon musk teslaelon musk pay packageelon musk testimony

Journalistic standards Report an error

© 2022 Reuters

Слово «типографія» походить від давньогрецьких слів τύπος — тобто «відтиск» — та γράφω — «пишу, малюю».
Останні новини
At Least A Dozen People Missing In Italian Landslide.

At Least A Dozen People Missing In Italian Landslide.

At least 12 people are missing and one person is dead after heavy rainfall triggered a landslide in Ischia, Italy. » Subscribe to NBC News: » Watch more NBC video: NBC News Digital is a collection of innovative and powerful news brands that delive...

Gutfeld: Swalwell couldn't get security clearance at a Cub Scout treehouse.

Gutfeld: Swalwell couldn't get security clearance at a Cub Scout treehouse.

House Republicans indicate they're ready for battle and prepared to boot far-left Democrats off committees. #FoxNews Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompassin...

Funeral held for police shooting victim Chris Kaba

Funeral held for police shooting victim Chris Kaba

Family and friends of Chris Kaba have gathered for his funeral in south London. The 24-year-old was shot dead by a Met Police officer in September after the car he was driving was flagged on a police database. The police officer has been suspended...

1 2

The grittiness behind the glamour of the World Cup

The grittiness behind the glamour of the World Cup

Sky News speaks to migrants working at the World Cup in Qatar to find out what conditions they are living in. #skynews #worldcup #qatar2022 SUBSCRIBE to our YouTube channel for more videos: Follow us on Twitter: Like us on Facebook: Follow us on I...

Press Preview: Sunday’s front pages

Press Preview: Sunday’s front pages

We take a look at what’s making Sunday’s front pages with Tim Stanley, the leader writer at The Daily Telegraph, and Aletha Adu of the Guardian. #papers #headlines #skynews #skynewsbreakfast SUBSCRIBE to our YouTube channel for more videos: Follow...

Former GOP lawmaker identifies 'larger problem' after Trump's dinner.

Former GOP lawmaker identifies 'larger problem' after Trump's dinner.

Former Republican congressman Charlie Dent and Democratic strategist Keith Boykin react to former President Donald Trump hosting rapper Ye (formerly known as Kanye West) and Holocaust denier Nick Fuentes at his Mar-a-Lago estate. #CNN #News