Saturday, May 31, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Musk’s pay trial asks if Tesla’s growth justifies $56 billion compensation By Reuters

by Reuters
November 19, 2022
in Stock Market
Reading Time: 3 mins read
A A
0
Home Stock Market
Share on FacebookShare on Twitter


2/2
© Reuters. FILE PHOTO: 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. REUTERS/Evelyn Hockstein/File Photo

2/2

By Tom Hals

WILMINGTON, Del. (Reuters) – 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 (NASDAQ:) Inc was justified by the company’s explosive growth or undermined by a flawed process.

Musk and the Tesla 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 (NYSE:), which he was forced to buy for $44 billion in a separate legal battle before the same judge, Chancellor Kathaleen McCormick (NYSE:).

“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.”



Source link

Tags: asksbillionCompensationGrowthJustifiesMuskspayReutersTeslasTrial
Previous Post

Carvana cuts 8% of workforce on slowing used-car demand By Reuters

Next Post

Nickel Digital, Metaplex and others continue to feel the impact of FTX collapse By Cointelegraph

Related Posts

Catalyst: Solid Business Model Propels Growth For This Buy And Build Pharma (NASDAQ:CPRX)

Catalyst: Solid Business Model Propels Growth For This Buy And Build Pharma (NASDAQ:CPRX)

by Out of Ignorance
May 31, 2025
0

This text was written byObserveWriting beneath the pseudonym "out of ignorance", I very a lot regard investing as a studying...

Dividend Champion, Contender, And Challenger Highlights: Week Of June 1

Dividend Champion, Contender, And Challenger Highlights: Week Of June 1

by Index Investing News
May 31, 2025
0

This textual content was written by Justin Laws has a Ph.D in Chemistry from Rice Faculty and has earned the...

John Hancock Income Fund Q1 2025 Commentary (JHFIX)

John Hancock Income Fund Q1 2025 Commentary (JHFIX)

by John Hancock Investment Management
May 31, 2025
0

This text was written byObserveAn organization of Manulife Funding Administration, John Hancock Funding Administration serves traders via a singular multimanager...

Report: Tariff Influence on B2B Resale Market

Report: Tariff Influence on B2B Resale Market

by Index Investing News
May 30, 2025
0

As tariff threats proceed to disrupt world present chains and drive up retail prices, every retailers and clients are rethinking...

EIM: Diversified Muni CEF For Monthly Income With Improving Distribution Coverage

EIM: Diversified Muni CEF For Monthly Income With Improving Distribution Coverage

by Nick Ackerman
May 30, 2025
0

This text was written byComply withNick Ackerman is a former monetary advisor utilizing his expertise to supply protection on closed-end...

Why I Imagine Tesla Will Quickly Grow to be Unprofitable (NASDAQ:TSLA)

Why I Imagine Tesla Will Quickly Grow to be Unprofitable (NASDAQ:TSLA)

by Index Investing News
May 31, 2025
0

This textual content was written by Hiya there, welcome to my profile. My establish is Eugenio Catone, I reside in...

Next Post
Nickel Digital, Metaplex and others continue to feel the impact of FTX collapse By Cointelegraph

Nickel Digital, Metaplex and others continue to feel the impact of FTX collapse By Cointelegraph

Elizabeth Holmes sentenced to more than 11 years in prison for Theranos fraud By Reuters

Elizabeth Holmes sentenced to more than 11 years in prison for Theranos fraud By Reuters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tim Walz Goes To South Carolina And Completely Unloads On Everyone

Tim Walz Goes To South Carolina And Completely Unloads On Everyone

May 31, 2025
Can Dogecoin Price Still Rally 1,000%? Analyst Reveals End-of-Year Prediction

Can Dogecoin Price Still Rally 1,000%? Analyst Reveals End-of-Year Prediction

May 31, 2025
Samsung Galaxy Buds Explained: Which One is Right for You?

Samsung Galaxy Buds Explained: Which One is Right for You?

May 31, 2025
SEC Commissioner Breaks Down Staking—Who’s Safe, What’s Covered

SEC Commissioner Breaks Down Staking—Who’s Safe, What’s Covered

May 31, 2025
Why India’s hotels enjoy highest EV per room globally

Why India’s hotels enjoy highest EV per room globally

May 31, 2025
Adani Group Outlines Transport Network in Rebuild of Mumbai Slum (Hold)

Adani Group Outlines Transport Network in Rebuild of Mumbai Slum (Hold)

May 31, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Tim Walz Goes To South Carolina And Completely Unloads On Everyone

Can Dogecoin Price Still Rally 1,000%? Analyst Reveals End-of-Year Prediction

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In