Judge to decide if Musk’s $56 billion payment package from Tesla justifies company’s growth – National
After five days of testimony from Elon Musk, including three hours, a Delaware judge decided whether Musk’s $56 billion payment package from Tesla Inc was justified by the company’s explosive growth, or Determine what has been compromised by the defective process.
Musk and the named defendant, Tesla’s board of directors, TSLA.O, repeatedly testified that the package served its purpose.
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Antonio Gracias, who served on Tesla’s board of directors from 2007 to 2021, said Wednesday in Chancery court in Delaware, “I believe Tesla will be one of the most valuable technology companies if it goes through. “It was a big deal for shareholders.”
The trial settles claims by shareholder Richard Tornetta that the 2018 compensation package was directed by Musk, the richest man in the world, to obedient directors and approved by votes of Tesla-fazed shareholders. The purpose is that.
The trial ended Friday as Musk struggles to oversee Twitter Inc’s chaotic overhaul.
“I have a feeling that even if it does go to trial, the verdict will be in Musk’s favor,” said Eric Talley, a Columbia Law School professor who has followed the case.
It will be months before McCormick gets sentencing and her decision is appealed to the Delaware Supreme Court.
During the week-long trial, directors said the compensation package would ensure Musk would lead the electric car maker at a critical stage that allowed him to focus on rocket company SpaceX and tunnel business The Boring Co. He said that it aims to
Mr. Musk told the board of directors that a giant planet would be built to realize the dream of a trip to Mars or, as he testified, to “make life multiplanetary to ensure the long-term survival of consciousness.” Said I needed a package.
Musk described his efforts to propel the company from the brink of failure in 2017 to exponential growth. “It hurts beyond words,” Musk testified Wednesday.
Gracias recalled that Musk celebrated his birthday in the factory conference room with a grocery store cake. “This was brutal 24/7 work,” he said in court.
The package allows Musk to purchase a 1% stake in Tesla stock at a steep discount every time his performance improves and his financial goals are met. Otherwise, Musk gets nothing.
Tesla hit 11 of its 12 goals as its value temporarily ballooned from $50 billion to over $1 trillion.
Tornetta wants to cancel the plan and return the shares granted under the plan to Tesla.
Much of the trial focused on information provided to shareholders before they approved the plan. Tornetta’s lawyers have tried to show that Tesla is hiding that her three goals for the package are likely to be met soon.
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Plaintiffs portrayed the directors as personal friends or business partners of Musk, who was a link to their wealth.
The directors tried to show that they could stand out against Musk’s demands. However, the evidence that drew the concession was limited to the best way to explain the stock grant and the requirement that Musk must hold the stock for five years.
Todd Mallon testified in compensation negotiations while serving as general counsel in 2017.
Talley said Musk is a unique CEO and his compensation reflects that.
“He’s like a Labrador retriever. was completed.
(Reporting by Tom Hals, Wilmington, Delaware; Editing by Daniel Wallis)
Judge to decide if Musk’s $56 billion payment package from Tesla justifies company’s growth – National
Source link Judge to decide if Musk’s $56 billion payment package from Tesla justifies company’s growth – National
