Back in 2018, Elon Musk was pretty much the only person who believed in Tesla. He made a pact with the Board that if he improved the performance of the company by ten times he would receive a massive payoff. (His plan was to use this in his space program). He was hailed as a “P. T. Barnum” by The New York Times who scoffed.
In 2018, Tesla $TSLA was worth just under $60 billion. They signed a 10-year CEO extension & compensation deal with @elonmusk , which offered him *zero base compensation*, but up to $55 billion in compensation if, and only if, he could more than *10x the company’s value* to $650… pic.twitter.com/wtDhwop3sT— Stock Talk (@stocktalkweekly) January 31, 2024
In Delaware, a judge recently ruled to void Elon Musk’s $56 billion compensation package from Tesla. The decision came after a lawsuit was filed by a Tesla shareholder, claiming that the compensation plan was unfair to the company’s shareholders. The judge agreed with the plaintiff, stating that the compensation plan was not properly negotiated and that the board did not act in the best interest of the company. She has even denied payments to Musk for the next five years.
Judge Kathaleen McCormick is not without form. She is a liberal activist in Biden’s home state and we all know how much he loves free speech. Before becoming the head of the Delaware Chancery Court, McCormick worked at a Delaware law firm called Young Conaway. The firm and its employees have been major donors to President Joe Biden for decades. This decision by Judge McCormick to override Tesla’s board and the majority of its shareholders is another clear example of the Biden administration and its allies weaponizing the American legal system against their political opponents.
Judge Kathaleen McCormick rescinded Elon Musk's $55 billion Tesla compensation package, overturning the company's board and 80% of its shareholders.— KanekoaTheGreat (@KanekoaTheGreat) February 1, 2024
McCormick also ruled against @elonmusk during his Twitter acquisition.
Before becoming the head of the Delaware Chancery Court,… pic.twitter.com/k2F4CHDJuT
Elon got even
Elon did Elon. First, he advised the business world not to incorporate in Delaware. He ran a poll on X asking whether he should relocate his company to Texas. Gov. Greg Abbott even chimed in. The results were emphatic.
Elon’s message: If you’re incorporating a company – don’t go to Delaware. As around 70% of Fortune 500 companies are incorporated in the state, raising billions in revenue, that’s a powerful message. The Governor must be very pissed at Judge Kathaleen right now.
The public vote is unequivocally in favor of Texas!— Elon Musk (@elonmusk) February 1, 2024
Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas. https://t.co/ParwqQvS3d