Far right-wing conspiracy monger, social media destroyer and crashing car mogul Elon Musk is getting more bad news these days. In addition to falling market values for Tesla and the shrinking value of his vanity project "X" / Twitter, Musk now has taken a hit regarding his massive Tesla pay package, per the Washington Post:
"A Delaware judge on Tuesday ruled that Elon Musk’s generous 2018 compensation package, which helped make the tech entrepreneur the world’s richest person, was unfair and should be undone.
The $56 billion package, advanced by shareholders and Tesla’s board, entitled Musk to stock options in the company as it hit specific performance targets. Shareholders sued Musk, alleging the process that led to the package was improper. [snip]
The ruling comes at a particularly tense juncture for the Tesla CEO. He has asked for 25 percent control over the company — which went on to become the world’s most valuable automaker after the pay package was implemented — after he sold off billions worth of stock to help fund his $44 billion acquisition of Twitter. Investors, including some who were enthusiastic about the 2018 package, are skeptical of Musk’s request for additional control.
Meanwhile, Tesla reported disappointing quarterly financial results last week that stemmed from steep price cuts that increased sales volume but barely grew its revenue. One analyst described the investor call as a 'train wreck.'” (our emphasis)
Tesla is incorporated in Delaware, and is required to follow the state's laws regarding public corporations. The judge, chancellor Kathaleen McCormick, said it is up to Tesla and its stockholders to comply and reduce the greedy Musk's compensation package. In her order, the judge noted the rigged process for the original determination of Musk's compensation:
"The approval process for the compensation package was 'deeply flawed,' she wrote, in part because of Musk’s close ties with the people representing the company, including the chair and another member of the compensation committee.
The group that worked on the compensation package also included the company’s general counsel, who once served as Musk’s divorce attorney and 'whose admiration for Musk moved him to tears during his deposition,' McCormick wrote." (our emphasis)
We trust that this decision will move both Musk's attorney pal and Musk to tears.
(photo: All hat, less compensation)
