Musk's $56B Payday Goes Poof: Judge Slaps Down Tesla CEO While Lawyers Get $345M Consolation Prize
Elon Musk Podcast5 Joulu 2024

Musk's $56B Payday Goes Poof: Judge Slaps Down Tesla CEO While Lawyers Get $345M Consolation Prize

The Tesla compensation case reached a decisive moment as Judge Kathaleen McCormick rejected Elon Musk's $56 billion package for the second time while awarding the victorious attorneys $345 million in fees. The case, originating from Richard Tornetta's 2018 lawsuit, challenged the compensation structure's approval process and board independence, culminating in a ruling that found fundamental flaws in Tesla's governance procedures. Key developments include the failed June 2024 shareholder revote, attorney work spanning 19,499.95 hours, and Tesla's planned Supreme Court appeal.

The ruling's impact extends beyond Tesla, establishing precedents for executive compensation and corporate governance. Judge McCormick's decision addresses both the compensation structure and attorney fees, with the legal team receiving a 25.3x multiplier on their hours despite requesting $5.6 billion. Musk responded through X, stating "shareholders should control company votes, not judges," while Tesla plans to challenge the ruling's implications for Delaware corporate law. The case highlights ongoing tensions between executive incentives, board independence, and shareholder interests, setting new standards for corporate governance and legal compensation in high-stakes litigation.

Jaksot(1217)

SpaceX Starship Flight 12 Update

SpaceX Starship Flight 12 Update

Track everything happening ahead of SpaceX Starship Flight 12 in one place. This live Starship Tracker follows the real-world milestones from Starbase as they happen, including vehicle status, test ca...

2 Tammi 24min

Tesla suffers MASSIVE 15% Drop in Sales

Tesla suffers MASSIVE 15% Drop in Sales

Tesla published its Q4 delivery consensus directly on its investor relations website for the first time ever. The expected number is 422,850 vehicles, a 15 percent drop from a year ago. Full-year 2025...

31 Joulu 202511min

Billionaires are following Elon Musk out of California

Billionaires are following Elon Musk out of California

California's proposed Billionaire Tax Act would impose a one-time 5% wealth tax on residents worth over $1 billion, potentially raising $100 billion from about 200 people. Larry Page and Peter Thiel a...

30 Joulu 202513min

Can Isaacman Beat China to the Moon?

Can Isaacman Beat China to the Moon?

Jared Isaacman was sworn in as NASA administrator on December 18 after a nomination process that included Trump pulling his name, a feud with Elon Musk, and a leaked 62-page restructuring plan. Now he...

29 Joulu 202512min

Musk Says "People Will Die" Over NYC's New Fire Commissioner

Musk Says "People Will Die" Over NYC's New Fire Commissioner

Elon Musk criticized incoming NYC Mayor Zohran Mamdani for appointing Lillian Bonsignore as FDNY commissioner, warning "people will die" because she has never been a firefighter. Bonsignore is a 31-ye...

28 Joulu 202514min

China Just Deployed Humanoid Robots to Its Border With Vietnam

China Just Deployed Humanoid Robots to Its Border With Vietnam

China has deployed humanoid robots to patrol border crossings with Vietnam. The UBTECH Walker S2 can guide travelers, conduct inspections, patrol corridors, and swap its own batteries for 24-hour cont...

28 Joulu 202520min

15 People Are Dead. Tesla Was Warned About Door Traps

15 People Are Dead. Tesla Was Warned About Door Traps

A Bloomberg investigation found at least 15 people have died in crashes where Tesla doors would not open. Elon Musk was warned about the design flaw in early 2016 during Model 3 development. Now feder...

27 Joulu 202512min

DOGE Cut 271,000 Jobs. Spending Still Went Up.

DOGE Cut 271,000 Jobs. Spending Still Went Up.

The Department of Government Efficiency disbanded in November after cutting 271,000 federal jobs, the largest peacetime workforce reduction since World War II. But new data shows federal spending rose...

24 Joulu 202513min