After five days of testimony, including three hours by Elon Musk, a Delaware judge will now decide whether Musk’s $56 billion payment package from Tesla Inc is justified given the explosive growth of Tesla Inc. Companies are often sabotaged by a flawed process.
Musk and the Tesla executives named as defendants have testified repeatedly that the package achieved what it set out to do – delivering a 10-fold increase in the company’s stock price, enriching investors. and Musk.
“We think that if we can do this, if this plan goes through, Tesla will be one of the most valuable tech companies,” said Antonio Gracias, Tesla board member. from 2007 to 2021, told Delaware Premier Court on Wednesday. “It’s a great deal for shareholders.”
The trial seeks to settle shareholder Richard Tornetta’s claim that the 2018 payment package offered by Musk, the world’s richest man, to junior directors and approved by a vote of shareholders was approved. deceived by Tesla.
The trial ended on Friday, as Musk struggled to oversee a tumultuous overhaul of Twitter Inc, the company he was forced to buy for $44 billion in a separate legal battle before the same year. judge, Prime Minister Kathaleen McCormick.
Eric Talley, a professor at Columbia Law School who has followed the case, said: “I have a feeling that although the case has gone to trial, the verdict will be in Mr Musk’s favour.
It will be several months before McCormick issues her verdict and her decision can be appealed to the Delaware Supreme Court.
During the week-long trial, executives said the payment package is intended to ensure Musk guides the electric-car maker through a critical period when he can focus on rocket company SpaceX or the venture. Tunneling The Boring Co.
Musk told the board he wanted a huge financial package to fund his dream of traveling to Mars, or, as he testified, to create “multi-planetary life to ensure its survival.” at the permanence of consciousness.”
Musk described his efforts to push the company from the brink of failure in 2017 to exponential growth. “Words cannot describe the extent of the pain,” Musk testified Wednesday.
Gracias recounted that Musk celebrated his birthday in the factory boardroom with a cake at the grocery store. “These are all hands on deck, 24/7, brutal,” he told the court.
This package allows Musk to buy 1% of Tesla stock at a deep discount each time his financial and performance goals escalate. Otherwise, Musk gets nothing.
Tesla hit 11 of its 12 goals as its value skyrocketed shortly to more than $1 trillion from $50 billion.
Tornetta wants the plan canceled and the shares issued under the plan returned to Tesla.
Much of the testing focused on the information provided to shareholders before they approved the plan. Tornetta’s lawyers tried to show Tesla that the three goals of the package could be quickly met.
Plaintiffs describe the directors as personal friends or business partners of Musk who are linked to their wealth.
The directors tried to show that they could stand their ground in the face of Musk’s demands. But evidence of concession withdrawal is limited to the best method of accounting for stock grants and requires that Musk hold his shares for five years.
“It was not a knock-out, manipulative case,” Todd Maron testified of the salary negotiations in 2017 when he was a general counsel.
Talley said Musk is a unique CEO and his salary reflects that.
“He was like a Labrador retriever. He saw a ball and he ran after it. You could almost make the argument that they didn’t pay him enough because he ran. follow Twitter.”
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
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