Delaware Confiscates $100 Billion of Musk’s Wealth
A Delaware judge confirmed Monday that it had confiscated Elon Musk’s wealth, which he created while working at Tesla. This would have denied him a compensation package worth more than $100 billion today.
Musk paid a high price for opposing woke politics and for making X a platform neutral. He also backed Donald Trump as president.
Kathaleen McCormick, Delaware’s Chancellor Judge, confirmed her ruling from January that Musk was not entitled to a 2018 compensation package valued at $56 billion.
McCormick claimed that the Tesla package Musk received was “the biggest compensation plan ever – an unfathomable amount.”
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Musk sued McCormick after McCormick initially ruled Musk did not have the proper approval of Tesla shareholders.
Musk claimed that he received the board’s approval in a timely manner and then met financial targets, which included benchmarks for stock value, profitability and revenue, to earn his compensation.
Musk, the visionary, had at one time pushed the value of Tesla close to a trillion dollars over the period of compensation. Tesla’s market capitalization is now over $1.1 trillion.
Tesla’s shareholders approved the Musk compensation plan after the January 2024 judge’s ruling.
Tesla stockholders approved Musk’s original compensation package of $56 billion in June with 77% supporting it.
Tesla’s compensation plan was again rejected by the Delaware court after the shareholder vote.
McCormick wrote in her Monday opinion that “even if a shareholder vote could have a validating effect, it would not be the case here.”
She wrote: “If the court condoned the practice of allowing defeated party to create new facts in order to revise judgments, litigation would become endless.”
McCormick, on the other hand, saw no contradiction in punishing Musk for his wealth, but giving $345 million to the attorneys who sued Musk on behalf of the shareholders for their legal filings.
Musk took to X and wrote, “Shareholders control company votes not judges.”
Musk reposted other X-posts critical of the ruling.
One post stated: “Things To Do In Delaware: 1) Leave.”
Musk also reported Cathie Wood, fund manager Cathie’s X posting where she called McCormick “an activist judge at its worst.”
Wood added: “No judge can determine the CEO’s compensation.” The shareholders overwhelmingly voted to approve @elonmusk’s 2018 performance-based compensation package.
Musk has been fighting Delaware since the first court ruling.
In this year, he changed the incorporation of both SpaceX and Tesla from Delaware to Texas. Neuralink was also moved to Nevada.
Musk has also encouraged other companies to leave Delaware.
Musk said it bluntly on X: “Never form your company in Delaware.”
Delaware, the home state of Joe Biden and his political agenda has been criticized for its close relationship with the Bidens.
The Wall Street Journal, co-authored with former Attorney General William Barr, published a piece last year that criticized Delaware for adopting far-left Environmental, Societal, and Governance policies and trying to force them on corporations.
The Hill reported major corporations were fleeing Delaware because of its politicized agenda.
Delaware’s data suggests that the number of new corporations is declining. Delaware’s data from 2022 shows a drop of 6% in the number of new companies.
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