Judge Rejects Tesla’s “Unfathomable” $56 Billion Pay Package for Elon Musk
- Written by Deep Shikha Content Writer
On April 17, the Guardian reported that Tesla asked its shareholders to reapprove CEO Elon Musk’s $56 billion pay deal set in 2018. A Delaware judge, Kathleen McCormick, had previously rejected this package in January, labeling it excessive and poorly justified. They called it an “unfathomable sum” and unfair to shareholders.
According to the Guardian, the compensation plan for Elon Musk does not include a traditional salary or cash bonuses. Instead, it offers incentives tied to Tesla’s market performance, with rewards set to kick in if the company’s value reaches up to $650 billion within the next decade. According to Google Finance , Tesla’s market value is around $460 billion.
In a letter to shareholders, Robyn Denholm, Tesla’s board chairperson, expressed the company’s discontent. “We do not agree with what the Delaware court decided, and we do not think that what the Delaware court said is how corporate law should or does work,” Denholm wrote.
This statement was part of a regulatory filing that also proposed another vote on Musk’s compensation, emphasizing Tesla’s challenge to the court’s previous decision.
Tesla also wrote in the filing that the company suggests subjecting the original 2018 package to a new shareholder vote if it’s legally advisable.
In addition, Tesla has urged its shareholders to support the move of the company’s state of incorporation from Delaware to Texas, as noted in another regulatory filing. This move could reflect a strategic shift in Tesla’s legal and corporate structure.
In 2023, Musk received no compensation from Tesla, maintaining his practice of forgoing a salary in favor of stock options. This approach to his pay structure highlights his investment in the company’s long-term performance rather than immediate cash earnings.
Tesla has had a fair share of issues this year. The company underperformed against market expectations and experienced its first decline in deliveries in 4 years. Also, last week, Elon Musk announced the layoff of approximately 10% of Tesla’s global workforce, roughly 14,000 employees, in response to the downturn in sales.
Ahead of the market opening, Tesla’s shares saw a modest increase of 1%, reflecting investor reactions to these developments. The ongoing saga around Musk’s pay and Tesla’s corporate decisions continues to draw significant attention from shareholders and the public alike.
Google Fires 28 Employees Involved in Sit-In Protest Against Israel Deal
- Written by Deep Shikha Content Writer
- Fact-Checked by
The firings occurred following the arrest of 9 employees who were part of sit-in protests at Google’s offices in Sunnyvale, California, and New York City. They were detained for several hours and then released, according to other employees.
Some of the employees occupied the office of Google Cloud CEO Thomas Kurian until law enforcement removed them. Google fired another employee last month for protesting this contract.
In the internal memo published by the Verge, Chris Rackow, the head of global security at Google, said, “If you’re one of the few who are tempted to think we’re going to overlook conduct that violates our policies, think again.” He clearly mentioned that the company strictly enforces its policies against disruptive behavior, which can lead to termination.
Chris Rackow also pointed out that the actions of terminated employees violated several company policies, including those regarding conduct, harassment, discrimination, and workplace standards. “Behavior like this has no place in our workplace, and we will not tolerate it,” he added.
One fired employee who helped organize the sit-in but did not directly participate told the Washington Post , “I’m furious.” The employee expressed disbelief at the company’s decision to fire individuals merely for being associated with an event not favored by the company.
According to the employee, the firings represent a significant escalation and a shift in how Google has previously responded to worker criticisms. The employee also said that members of the No Tech for Apartheid group have consulted with a lawyer about potentially pursuing legal action against Google for alleged violations of labor law.
The “No Tech for Apartheid” group, which organized the protests, described Google’s firings as retaliatory in a Medium post . They mentioned that no Google executive has addressed their concerns despite 3 years of voicing concerns over Project Nimbus. The group emphasized that Google workers should have the right to peacefully protest labor conditions, asserting that the firings were clearly in retaliation.
