Elon Musk to Take Stand in Trial Over His Tesla Compensation Package

[dasari4kntr]

CEO, who this week said he has ‘too much work on his plate,’ is expected to take the stand Wednesday in Delaware court

 

WILMINGTON, Del.—Elon Musk is slated to take the stand Wednesday in a shareholder lawsuit over his multibillion-dollar compensation package at Tesla Inc. 

The trial that kicked off Monday in Delaware’s business-law court has focused on whether Mr. Musk, Tesla’s chief executive, had undue influence over a 2018 pay package that is worth around $52 billion at recent share prices. 

Richard Tornetta, a Tesla shareholder, is seeking to nullify Mr. Musk’s grant, alleging the CEO controlled the board’s consideration of his pay package and that the board failed to disclose crucial information to shareholders, who signed off on it. 

Mr. Musk’s expected appearance in the Court of Chancery comes amid a turbulent time for the entrepreneur, who also runs rocket company SpaceX and last month closed a $44 billion takeover of Twitter Inc. He has since laid off around 50% of the social-media platform’s staff and tried to implement various product changes.

Speaking earlier this week at a conference, Mr. Musk said, “I have too much work on my plate, that is for sure.” 

Tesla Chair Robyn Denholm, board member Ira Ehrenpreis, former Chief Financial Officer Deepak Ahuja and former General Counsel Todd Maron testified ahead of Mr. Musk. Several of them said Mr. Musk didn’t dictate the terms of the grant, which vests based on Tesla’s valuation and the achievement of various milestones. 

Ms. Denholm, who testified remotely on Tuesday, called the goals tied to Mr. Musk’s grant “audacious,” while an attorney for the plaintiff displayed Tesla records showing that internal projections leading up to shareholder approval of the pay package contemplated that the company would soon achieve some of the targets.

Mr. Musk, who doesn’t receive a salary from Tesla, has secured all but one of the 12 tranches of options available under the grant. Tesla’s market capitalization has increased more than 10-fold since shareholders signed off on the CEO’s pay package in March 2018, helping it become the world’s most valuable car maker, while making Mr. Musk the globe’s wealthiest person.

The plaintiff alleges the compensation deal was unnecessary to motivate Mr. Musk. A plaintiff’s attorney on Monday pointed to a May 2017 Tesla earnings call on which Mr. Musk said he planned to be actively involved in the company for the rest of his life.

Chancellor Kathaleen McCormick, the judge in the five-day, nonjury trial, isn’t expected to issue a verdict for months after the trial concludes. The judge also presided over Twitter’s lawsuit seeking to compel Mr. Musk to buy the social-media company. That transaction closed before the case went to trial.

https://www.wsj.com/articles/elon-musk-to-take-stand-in-trial-over-his-tesla-compensation-package-11668574248?mod=hp_lead_pos4

 

[dasari4kntr]

@Picheshwar this is the news...i was talking about yesterday...

[Thokkalee]

Isn’t this bcoz of the exponential growth of Tesla? Who would have thought that it will grow this big?? Grow avakapothe he wouldn’t have got anything at all… 

[dasari4kntr]

9 minutes ago, Thokkalee said:

Isn’t this bcoz of the exponential growth of Tesla? Who would have thought that it will grow this big?? Grow avakapothe he wouldn’t have got anything at all… 

emo bro..

its in trial… lets see what’s the outcome..

[Variety_Pullayya]

hope he loses the money and tesla goes down too....

@Sucker  bhaga cheppana 

 

 

 

[MRI]

capitalist nation lo ilanti cases gelustaarani nammakam kooda vunda?? lol

[dasari4kntr]

16 minutes ago, Variety_Pullayya said:

hope he loses the money and tesla goes down too....

@Sucker  bhaga cheppana 

 

 

 

no…no…

ప్రపంచ స్థాయి మేధావికి ఒక్క డాలర్ కూడా తగ్గకూడదు…

ఇంటర్నెట్, waste management తో road technology  లాంటివి కనిపెట్టి ఉచితంగా ఇచ్చినవాళ్ళు మనకి అనవసరం…

మా మస్క్ మేధావికి ఒక్క డాలర్ కూడా తగ్గకూడదు అంతే…

[dasari4kntr]

7 minutes ago, MRI said:

capitalist nation lo ilanti cases gelustaarani nammakam kooda vunda?? lol

నేను NYC లో నెలకో protest చూస్తున్నా…

capitalistic country లో మరి వాటికి స్థానం ఉందా…?

 

[Thokkalee]

1 hour ago, dasari4kntr said:

emo bro..

its in trial… lets see what’s the outcome..

 

https://electrek.co/2018/03/21/tesla-tsla-investors-approve-elon-musk-new-multibillion-compensation-package/

[dasari4kntr]

3 minutes ago, Thokkalee said:

 

https://electrek.co/2018/03/21/tesla-tsla-investors-approve-elon-musk-new-multibillion-compensation-package/

voting percentage entha..?

i am also investing (not tesla)…i too get mails like caste your vote on org decision ani…

most of them i don’t respond…total outstanding shares enni …total shareholder count entha..?..caste ayina votes enni…? aa details vunte post cheyy…

[Raven_Rayes]

23 minutes ago, MRI said:

capitalist nation lo ilanti cases gelustaarani nammakam kooda vunda?? lol

case vaadi meedha esindhi kooda capitalist ley. US has the most robust shareholder activism in the entire world.

Europe lo aithey ee case gelavaru. actually case aey eyyaru. US lo slight chances. the reason why this lawsuit will fail is because it is filed by some lightweight asshole who's not even in the hedge fund industry. no one cares about this case, except people who want Elon Musk to fail.

[Thokkalee]

9 minutes ago, dasari4kntr said:

voting percentage entha..?

i am also investing (not tesla)…i too get mails like caste your vote on org decision ani…

most of them i don’t respond…total outstanding shares enni …total shareholder count entha..?..caste ayina votes enni…? aa details vunte post cheyy…

Those details will come out in the trial I guess… but ceo compensation is usually approved by the board only right?? Not all the stock holders.. isn’t it? 

[Raven_Rayes]

2 minutes ago, Thokkalee said:

Those details will come out in the trial I guess… but ceo compensation is usually approved by the board only right?? Not all the stock holders.. isn’t it? 

US has the provision for individual shareholders to challenge the board decision in court. I don't think any other country's judicial system allows this.

[dasari4kntr]

5 minutes ago, Thokkalee said:

Those details will come out in the trial I guess… but ceo compensation is usually approved by the board only right?? Not all the stock holders.. isn’t it? 

this is the sample voting form...i got it for coinbase...

 

1.

Vote Board of Directors:

Vote Directors Individually

showing combined election of directors, radio button options

Election of Director: Frederick E. Ehrsam III

Election of Director: Tobias Lütke

Election of Director: Fred Wilson

Board Recommendation: For

Election of Director: Frederick E. Ehrsam III

Election of Director: Tobias Lütke

Election of Director: Fred Wilson

Board Recommendation: For

For All

Withhold All

Ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the year ending December 31, 2022.

Board Recommendation:For

2.

Ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the year ending December 31, 2022.

Board Recommendation:For

For

 

Against

 

Abstain

 

Advisory vote on the compensation of our named executive officers.

Board Recommendation:For

3.

Advisory vote on the compensation of our named executive officers.

Board Recommendation:For

For

 

Against

 

Abstain

 

Advisory vote on the frequency of future advisory votes on the compensation of our named executive officers.

Board Recommendation:3 Years

4.

Advisory vote on the frequency of future advisory votes on the compensation of our named executive officers.

Board Recommendation:3 Years

1 Year

 

2 Years

 

3 Years

 

Abstain

 

 

 

[Variety_Pullayya]

30 minutes ago, dasari4kntr said:

no…no…

ప్రపంచ స్థాయి మేధావికి ఒక్క డాలర్ కూడా తగ్గకూడదు…

ఇంటర్నెట్, waste management తో road technology  లాంటివి కనిపెట్టి ఉచితంగా ఇచ్చినవాళ్ళు మనకి అనవసరం…

మా మస్క్ మేధావికి ఒక్క డాలర్ కూడా తగ్గకూడదు అంతే…

adela...his money is tied with company progress as options.  so rendu padipovali....

asalu electric based cars emti....we need more petrol cars. munchalsinde.  specex kuda pothe....then full circle.