What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?

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What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?

Reuters2024-12-03

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a4xrbj1
·2024-12-03
He won't get his $101.5 Billion, it's absolutely outrageous and one could construct a claim that eg autonomy can never be achieved on HW3 so he missed his condition on that one anyways. It was an excellent run the company to the ground, then propose lofty targets, then lie at every occasion to make it look as it you can achieve the targets. All the while make sure that you negotiate with yourself actually.
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- zeliaReplying toa4xrbj1:
  sour grapes
  2024-12-03
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- zeliaReplying toa4xrbj1:
  noted, sour grape. we all know. the grapes are very sour as u missed the boat. try harder to talk down tesla. good try
  2024-12-03
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- a4xrbj1:
  You can short Tesla all the time except during 24h trade window
  2024-12-03
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WealthBuilder
·2024-12-03
He will ask President to fire the Judge
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- T90:
  Tesla will appeal further... and will succeed in the end...
  2024-12-04
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Musk&#39;s other companies include rocket venture SpaceX and Neuralink, which develops brain implants.</p><h2 id=\"id_2065050315\" style=\"text-align: start;\">TESLA COULD APPEAL THE RULING</h2><p>Musk and Tesla&#39;s board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.</p><p>The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.</p><p>For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla&#39;s stock.</p><p>In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk&#39;s pay was a &#34;novel&#34; legal tactic and has said it was unclear how it would be treated under Delaware law.</p><h2 id=\"id_741800313\" style=\"text-align: start;\">TESLA COULD DEVISE A NEW PLAN</h2><p>Tesla&#39;s board could craft a new pay package, although that could be very expensive.</p><p>The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla&#39;s stock has risen 10-fold since then, making the options incredibly valuable.</p><p>Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.</p><h2 id=\"id_3385019166\" style=\"text-align: start;\">COULD TESLA JUST RESTORE THE OLD PLAN?</h2><p>Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.</p><p>But the company cannot escape accounting and tax implications.</p><p>Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.</p><p>In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman &amp; Machtinger.</p><h2 id=\"id_1057819079\" style=\"text-align: start;\">MUSK COULD TRY TO SETTLE THE LAWSUIT</h2><p>Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.</p></body></html>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1032215980\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2024-12-03 15:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO&#39;s pay deal by the company&#39;s shareholders, a Delaware judge ruled on Monday.</p><p>Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:</p><h2 id=\"id_4015928809\" style=\"text-align: start;\">WHAT DOES MUSK WANT?</h2><p>Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.</p><p>In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk&#39;s other companies include rocket venture SpaceX and Neuralink, which develops brain implants.</p><h2 id=\"id_2065050315\" style=\"text-align: start;\">TESLA COULD APPEAL THE RULING</h2><p>Musk and Tesla&#39;s board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.</p><p>The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.</p><p>For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla&#39;s stock.</p><p>In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk&#39;s pay was a &#34;novel&#34; legal tactic and has said it was unclear how it would be treated under Delaware law.</p><h2 id=\"id_741800313\" style=\"text-align: start;\">TESLA COULD DEVISE A NEW PLAN</h2><p>Tesla&#39;s board could craft a new pay package, although that could be very expensive.</p><p>The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla&#39;s stock has risen 10-fold since then, making the options incredibly valuable.</p><p>Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.</p><h2 id=\"id_3385019166\" style=\"text-align: start;\">COULD TESLA JUST RESTORE THE OLD PLAN?</h2><p>Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.</p><p>But the company cannot escape accounting and tax implications.</p><p>Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.</p><p>In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman &amp; Machtinger.</p><h2 id=\"id_1057819079\" style=\"text-align: start;\">MUSK COULD TRY TO SETTLE THE LAWSUIT</h2><p>Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1629891620.HKD","symbol_name":"ALLIANZ INCOME AND GROWTH \"AMG2\" (H2-HKD) INC","start_time":0,"source_url":"https://api.refinitiv.com/data/news/v1/stories/urn:newsml:reuters.com:20241203:nL1N3KL0VL:1","article_id":"2488693392","we_media_id":"1032215980","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2488693392","pubTimestamp":1733211000,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Reuters","introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"id":"1032215980","head_image":"https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48"},"summary":"WILMINGTON, Delaware, Dec 2  - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO's pay deal by the company's shareholders, a Delaware judge ruled on Monday.Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:WHAT DOES MUSK WANT?Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. 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Musk's other companies include rocket venture SpaceX and Neuralink, which develops brain implants.TESLA COULD APPEAL THE RULINGMusk and Tesla's board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla's stock.In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk's pay was a \"novel\" legal tactic and has said it was unclear how it would be treated under Delaware law.TESLA COULD DEVISE A NEW PLANTesla's board could craft a new pay package, although that could be very expensive.The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla's stock has risen 10-fold since then, making the options incredibly valuable.Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.COULD TESLA JUST RESTORE THE OLD PLAN?Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.But the company cannot escape accounting and tax implications.Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman & Machtinger.MUSK COULD TRY TO SETTLE THE LAWSUITMusk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.","kind":"highlight","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"executive","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":true,"code":"91000000","status":"200"},"commentList":[{"id":377583783731328,"gmtCreate":1733211966161,"gmtModify":1733221802204,"author":{"id":"4140090365269462","authorId":"4140090365269462","name":"a4xrbj1","avatar":"https://community-static.tradeup.com/news/9d8912bc5b3237f119291ecf0caa4d5a","vip":1,"crmLevel":12,"crmLevelSwitch":1,"idStr":"4140090365269462","authorIdStr":"4140090365269462"},"htmlText":"He won't get his $101.5 Billion, it's absolutely outrageous and one could construct a claim that eg autonomy can never be achieved on HW3 so he missed his condition on that one anyways. It was an excellent run the company to the ground, then propose lofty targets, then lie at every occasion to make it look as it you can achieve the targets. All the while make sure that you negotiate with yourself actually.","listText":"He won't get his $101.5 Billion, it's absolutely outrageous and one could construct a claim that eg autonomy can never be achieved on HW3 so he missed his condition on that one anyways. It was an excellent run the company to the ground, then propose lofty targets, then lie at every occasion to make it look as it you can achieve the targets. All the while make sure that you negotiate with yourself actually.","text":"He won't get his $101.5 Billion, it's absolutely outrageous and one could construct a claim that eg autonomy can never be achieved on HW3 so he missed his condition on that one anyways. It was an excellent run the company to the ground, then propose lofty targets, then lie at every occasion to make it look as it you can achieve the targets. All the while make sure that you negotiate with yourself actually.","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":36,"commentSize":10,"repostSize":0,"link":"https://ttm.financial/post/377583783731328","repostId":2488693392,"repostType":2,"repost":{"id":"2488693392","kind":"highlight","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1032215980","head_image":"https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48"},"pubTimestamp":1733211000,"share":"https://ttm.financial/m/news/2488693392?lang=en_US&edition=fundamental","pubTime":"2024-12-03 15:30","market":"us","language":"en","title":"What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?","url":"https://stock-news.laohu8.com/highlight/detail?id=2488693392","media":"Reuters","summary":"WILMINGTON, Delaware, Dec 2  - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO's pay deal by the company's shareholders, a Delaware judge ruled on Monday.Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:WHAT DOES MUSK WANT?Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to ","content":"<html><head></head><body><p>WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO&#39;s pay deal by the company&#39;s shareholders, a Delaware judge ruled on Monday.</p><p>Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:</p><h2 id=\"id_4015928809\" style=\"text-align: start;\">WHAT DOES MUSK WANT?</h2><p>Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.</p><p>In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk&#39;s other companies include rocket venture SpaceX and Neuralink, which develops brain implants.</p><h2 id=\"id_2065050315\" style=\"text-align: start;\">TESLA COULD APPEAL THE RULING</h2><p>Musk and Tesla&#39;s board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.</p><p>The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.</p><p>For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla&#39;s stock.</p><p>In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk&#39;s pay was a &#34;novel&#34; legal tactic and has said it was unclear how it would be treated under Delaware law.</p><h2 id=\"id_741800313\" style=\"text-align: start;\">TESLA COULD DEVISE A NEW PLAN</h2><p>Tesla&#39;s board could craft a new pay package, although that could be very expensive.</p><p>The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla&#39;s stock has risen 10-fold since then, making the options incredibly valuable.</p><p>Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.</p><h2 id=\"id_3385019166\" style=\"text-align: start;\">COULD TESLA JUST RESTORE THE OLD PLAN?</h2><p>Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.</p><p>But the company cannot escape accounting and tax implications.</p><p>Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.</p><p>In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman &amp; Machtinger.</p><h2 id=\"id_1057819079\" style=\"text-align: start;\">MUSK COULD TRY TO SETTLE THE LAWSUIT</h2><p>Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1032215980\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2024-12-03 15:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO&#39;s pay deal by the company&#39;s shareholders, a Delaware judge ruled on Monday.</p><p>Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:</p><h2 id=\"id_4015928809\" style=\"text-align: start;\">WHAT DOES MUSK WANT?</h2><p>Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.</p><p>In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk&#39;s other companies include rocket venture SpaceX and Neuralink, which develops brain implants.</p><h2 id=\"id_2065050315\" style=\"text-align: start;\">TESLA COULD APPEAL THE RULING</h2><p>Musk and Tesla&#39;s board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.</p><p>The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.</p><p>For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla&#39;s stock.</p><p>In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk&#39;s pay was a &#34;novel&#34; legal tactic and has said it was unclear how it would be treated under Delaware law.</p><h2 id=\"id_741800313\" style=\"text-align: start;\">TESLA COULD DEVISE A NEW PLAN</h2><p>Tesla&#39;s board could craft a new pay package, although that could be very expensive.</p><p>The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla&#39;s stock has risen 10-fold since then, making the options incredibly valuable.</p><p>Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.</p><h2 id=\"id_3385019166\" style=\"text-align: start;\">COULD TESLA JUST RESTORE THE OLD PLAN?</h2><p>Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.</p><p>But the company cannot escape accounting and tax implications.</p><p>Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.</p><p>In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman &amp; Machtinger.</p><h2 id=\"id_1057819079\" style=\"text-align: start;\">MUSK COULD TRY TO SETTLE THE LAWSUIT</h2><p>Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1629891620.HKD":"ALLIANZ INCOME AND GROWTH \"AMG2\" (H2-HKD) INC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","BK4598":"佩洛西持仓","LU2063271972.USD":"富兰克林创新领域基金","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","TSLA":"特斯拉","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","LU2213496289.HKD":"ALLIANZ INCOME AND GROWTH \"AT\" (HKD) ACC","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4099":"汽车制造商","BK4511":"特斯拉概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1145028129.USD":"ALLIANZ INCOME AND GROWTH \"AQ\" (USD) INC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","BK4534":"瑞士信贷持仓","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU2023250330.USD":"ALLIANZ INCOME AND GROWTH \"AMG\" (USD) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1548497426.USD":"安联环球人工智能AT Acc","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4592":"伊斯兰概念","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","BK4574":"无人驾驶","BK4550":"红杉资本持仓","BK4588":"碎股","LU0056508442.USD":"贝莱德世界科技基金A2","LU0823414478.USD":"法巴经典能源转换基金","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4548":"巴美列捷福持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4551":"寇图资本持仓"},"source_url":"https://api.refinitiv.com/data/news/v1/stories/urn:newsml:reuters.com:20241203:nL1N3KL0VL:1","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2488693392","content_text":"WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO's pay deal by the company's shareholders, a Delaware judge ruled on Monday.Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:WHAT DOES MUSK WANT?Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk's other companies include rocket venture SpaceX and Neuralink, which develops brain implants.TESLA COULD APPEAL THE RULINGMusk and Tesla's board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla's stock.In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk's pay was a \"novel\" legal tactic and has said it was unclear how it would be treated under Delaware law.TESLA COULD DEVISE A NEW PLANTesla's board could craft a new pay package, although that could be very expensive.The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla's stock has risen 10-fold since then, making the options incredibly valuable.Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.COULD TESLA JUST RESTORE THE OLD PLAN?Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.But the company cannot escape accounting and tax implications.Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman & Machtinger.MUSK COULD TRY TO SETTLE THE LAWSUITMusk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.","news_type":1,"symbols_score_info":{"TSLA":0.9}},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":377618173411392,"gmtCreate":1733221559647,"gmtModify":1733221564663,"authorId":4151941377592162,"author":{"id":4151941377592162,"idStr":"4151941377592162","authorId":4151941377592162,"name":"zelia","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":4140090365269462,"repliedAuthor":{"id":4140090365269462,"idStr":"4140090365269462","authorId":4140090365269462,"name":"a4xrbj1","avatar":"https://community-static.tradeup.com/news/9d8912bc5b3237f119291ecf0caa4d5a","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Published at least 3 PICK posts (or 10 IDEA posts) and, within the past 30 days, posted at least 1 PICK post (or 4 IDEA posts) and 1 comment","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.01.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":12,"crmLevelSwitch":1,"individualDisplayBadges":[]},"objectId":377583783731328,"type":1,"supId":377624778227712,"prevId":377614418063608,"content":"sour <u>grapes</u>","text":"sour <u>grapes</u>","html":"sour <u>grapes</u>"},{"id":377618440949832,"gmtCreate":1733221526717,"gmtModify":1733221531662,"authorId":4151941377592162,"author":{"id":4151941377592162,"idStr":"4151941377592162","authorId":4151941377592162,"name":"zelia","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":4140090365269462,"repliedAuthor":{"id":4140090365269462,"idStr":"4140090365269462","authorId":4140090365269462,"name":"a4xrbj1","avatar":"https://community-static.tradeup.com/news/9d8912bc5b3237f119291ecf0caa4d5a","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Published at least 3 PICK posts (or 10 IDEA posts) and, within the past 30 days, posted at least 1 PICK post (or 4 IDEA posts) and 1 comment","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.01.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":12,"crmLevelSwitch":1,"individualDisplayBadges":[]},"objectId":377583783731328,"type":1,"supId":377624778227712,"prevId":377614418063608,"content":"noted, sour grape. we all know. the grapes are very sour as u missed the boat. try harder to talk down tesla. good <u>try</u>","text":"noted, sour grape. we all know. the grapes are very sour as u missed the boat. try harder to talk down tesla. good <u>try</u>","html":"noted, sour grape. we all know. the grapes are very sour as u missed the boat. try harder to talk down tesla. good <u>try</u>"},{"id":377615097426056,"gmtCreate":1733220710443,"gmtModify":1733220715376,"authorId":4140090365269462,"author":{"id":4140090365269462,"idStr":"4140090365269462","authorId":4140090365269462,"name":"a4xrbj1","avatar":"https://community-static.tradeup.com/news/9d8912bc5b3237f119291ecf0caa4d5a","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Published at least 3 PICK posts (or 10 IDEA posts) and, within the past 30 days, posted at least 1 PICK post (or 4 IDEA posts) and 1 comment","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.01.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":12,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":377583783731328,"type":1,"supId":377627384656272,"prevId":0,"content":"You can short Tesla all the time except during 24h trade window","text":"You can short Tesla all the time except during 24h trade window","html":"You can short Tesla all the time except during 24h trade window"},{"id":377614981447720,"gmtCreate":1733220681846,"gmtModify":1733220686664,"authorId":4140090365269462,"author":{"id":4140090365269462,"idStr":"4140090365269462","authorId":4140090365269462,"name":"a4xrbj1","avatar":"https://community-static.tradeup.com/news/9d8912bc5b3237f119291ecf0caa4d5a","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Published at least 3 PICK posts (or 10 IDEA posts) and, within the past 30 days, posted at least 1 PICK post (or 4 IDEA posts) and 1 comment","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.01.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":12,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":377583783731328,"type":1,"supId":377618874064968,"prevId":0,"content":"Seems like a classic stock pump to me","text":"Seems like a classic stock pump to me","html":"Seems like a classic stock pump to me"},{"id":377614418063608,"gmtCreate":1733220651237,"gmtModify":1733220656007,"authorId":4140090365269462,"author":{"id":4140090365269462,"idStr":"4140090365269462","authorId":4140090365269462,"name":"a4xrbj1","avatar":"https://community-static.tradeup.com/news/9d8912bc5b3237f119291ecf0caa4d5a","vip":1,"currentWearingBadge":{"badgeId":"9427a906234c4b18a82ec3d7730b7fa8-1","templateUuid":"9427a906234c4b18a82ec3d7730b7fa8","name":"Star Contributor","description":"Published at least 3 PICK posts (or 10 IDEA posts) and, within the past 30 days, posted at least 1 PICK post (or 4 IDEA posts) and 1 comment","bigImgUrl":"https://community-static.tradeup.com/news/1866dcf97a73be1c330f85862546aedc","smallImgUrl":"https://community-static.tradeup.com/news/4f5c5fa8e2c7683bb5a7fce8753ee456","redirectLinkEnabled":1,"redirectLink":"https://ttm.financial/activity/market/2023/star-contributors/","hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2025.01.27","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":2007},"crmLevel":12,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":377583783731328,"type":1,"supId":377624778227712,"prevId":0,"content":"I wrote that it won’t be possible on HW3, maybe even HW4. As long as Tesla isn’t using additional sensors like Lidar/Radar FSD won’t work in low visibility situations like heavy fog or snow storm (it turns itself off, check YT videos posted).\n<br><br>\n<br>Has nothing to do with predicting future, it’s called science and if you’re interested there are lots of experts posting about this and also scientific papers.","text":"I wrote that it won’t be possible on HW3, maybe even HW4. As long as Tesla isn’t using additional sensors like Lidar/Radar FSD won’t work in low visibility situations like heavy fog or snow storm (it turns itself off, check YT videos posted).\n<br><br>\n<br>Has nothing to do with predicting future, it’s called science and if you’re interested there are lots of experts posting about this and also scientific papers.","html":"I wrote that it won’t be possible on HW3, maybe even HW4. As long as Tesla isn’t using additional sensors like Lidar/Radar FSD won’t work in low visibility situations like heavy fog or snow storm (it turns itself off, check YT videos posted).\n<br><br>\n<br>Has nothing to do with predicting future, it’s called science and if you’re interested there are lots of experts posting about this and also scientific papers."}],"langContent":"EN"},{"id":377538521997400,"gmtCreate":1733211641273,"gmtModify":1733211644873,"author":{"id":"4171803256903022","authorId":"4171803256903022","name":"WealthBuilder","avatar":"https://community-static.tradeup.com/news/c38f4668f8134a2f2f17efffb35d19b4","vip":1,"crmLevel":12,"crmLevelSwitch":0,"idStr":"4171803256903022","authorIdStr":"4171803256903022"},"htmlText":"He will ask President to fire the Judge","listText":"He will ask President to fire the Judge","text":"He will ask President to fire the Judge","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/377538521997400","repostId":2488693392,"repostType":2,"repost":{"id":"2488693392","kind":"highlight","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1032215980","head_image":"https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48"},"pubTimestamp":1733211000,"share":"https://ttm.financial/m/news/2488693392?lang=en_US&edition=fundamental","pubTime":"2024-12-03 15:30","market":"us","language":"en","title":"What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?","url":"https://stock-news.laohu8.com/highlight/detail?id=2488693392","media":"Reuters","summary":"WILMINGTON, Delaware, Dec 2  - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO's pay deal by the company's shareholders, a Delaware judge ruled on Monday.Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:WHAT DOES MUSK WANT?Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to ","content":"<html><head></head><body><p>WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO&#39;s pay deal by the company&#39;s shareholders, a Delaware judge ruled on Monday.</p><p>Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:</p><h2 id=\"id_4015928809\" style=\"text-align: start;\">WHAT DOES MUSK WANT?</h2><p>Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.</p><p>In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk&#39;s other companies include rocket venture SpaceX and Neuralink, which develops brain implants.</p><h2 id=\"id_2065050315\" style=\"text-align: start;\">TESLA COULD APPEAL THE RULING</h2><p>Musk and Tesla&#39;s board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.</p><p>The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.</p><p>For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla&#39;s stock.</p><p>In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk&#39;s pay was a &#34;novel&#34; legal tactic and has said it was unclear how it would be treated under Delaware law.</p><h2 id=\"id_741800313\" style=\"text-align: start;\">TESLA COULD DEVISE A NEW PLAN</h2><p>Tesla&#39;s board could craft a new pay package, although that could be very expensive.</p><p>The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla&#39;s stock has risen 10-fold since then, making the options incredibly valuable.</p><p>Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.</p><h2 id=\"id_3385019166\" style=\"text-align: start;\">COULD TESLA JUST RESTORE THE OLD PLAN?</h2><p>Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.</p><p>But the company cannot escape accounting and tax implications.</p><p>Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.</p><p>In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman &amp; Machtinger.</p><h2 id=\"id_1057819079\" style=\"text-align: start;\">MUSK COULD TRY TO SETTLE THE LAWSUIT</h2><p>Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Is Next for Musk After Judge Rules Against Him in Tesla Pay Case?\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1032215980\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/4567337cbdf294b657b1fa87c5488b48);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2024-12-03 15:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO&#39;s pay deal by the company&#39;s shareholders, a Delaware judge ruled on Monday.</p><p>Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:</p><h2 id=\"id_4015928809\" style=\"text-align: start;\">WHAT DOES MUSK WANT?</h2><p>Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.</p><p>In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk&#39;s other companies include rocket venture SpaceX and Neuralink, which develops brain implants.</p><h2 id=\"id_2065050315\" style=\"text-align: start;\">TESLA COULD APPEAL THE RULING</h2><p>Musk and Tesla&#39;s board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.</p><p>The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.</p><p>For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla&#39;s stock.</p><p>In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk&#39;s pay was a &#34;novel&#34; legal tactic and has said it was unclear how it would be treated under Delaware law.</p><h2 id=\"id_741800313\" style=\"text-align: start;\">TESLA COULD DEVISE A NEW PLAN</h2><p>Tesla&#39;s board could craft a new pay package, although that could be very expensive.</p><p>The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla&#39;s stock has risen 10-fold since then, making the options incredibly valuable.</p><p>Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.</p><h2 id=\"id_3385019166\" style=\"text-align: start;\">COULD TESLA JUST RESTORE THE OLD PLAN?</h2><p>Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.</p><p>But the company cannot escape accounting and tax implications.</p><p>Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.</p><p>In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman &amp; Machtinger.</p><h2 id=\"id_1057819079\" style=\"text-align: start;\">MUSK COULD TRY TO SETTLE THE LAWSUIT</h2><p>Musk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1629891620.HKD":"ALLIANZ INCOME AND GROWTH \"AMG2\" (H2-HKD) INC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","BK4598":"佩洛西持仓","LU2063271972.USD":"富兰克林创新领域基金","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","TSLA":"特斯拉","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","LU2213496289.HKD":"ALLIANZ INCOME AND GROWTH \"AT\" (HKD) ACC","LU0082616367.USD":"摩根大通美国科技A（dist）","BK4099":"汽车制造商","BK4511":"特斯拉概念","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1145028129.USD":"ALLIANZ INCOME AND GROWTH \"AQ\" (USD) INC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","BK4534":"瑞士信贷持仓","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","LU2023250330.USD":"ALLIANZ INCOME AND GROWTH \"AMG\" (USD) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","LU2249611893.SGD":"BNP PARIBAS ENERGY TRANSITION \"CRH\" (SGD) ACC","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1548497426.USD":"安联环球人工智能AT Acc","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","BK4592":"伊斯兰概念","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","BK4574":"无人驾驶","BK4550":"红杉资本持仓","BK4588":"碎股","LU0056508442.USD":"贝莱德世界科技基金A2","LU0823414478.USD":"法巴经典能源转换基金","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4548":"巴美列捷福持仓","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","SG9999015978.USD":"利安颠覆性创新基金A","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4551":"寇图资本持仓"},"source_url":"https://api.refinitiv.com/data/news/v1/stories/urn:newsml:reuters.com:20241203:nL1N3KL0VL:1","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2488693392","content_text":"WILMINGTON, Delaware, Dec 2 (Reuters) - Tesla cannot give Elon Musk a $56 billion compensation package despite a vote in support of the CEO's pay deal by the company's shareholders, a Delaware judge ruled on Monday.Below is a look at what could come next for Tesla and its billionaire founder, who is still seeking a huge payday from the company:WHAT DOES MUSK WANT?Musk told a special committee of the Tesla board soon after a judge voided his compensation in January that he wanted a similar-sized replacement package, according to a securities filing.In addition, earlier this year he said on his social media platform X that he wanted a larger stake in Tesla or he might develop some products outside the company. Musk's other companies include rocket venture SpaceX and Neuralink, which develops brain implants.TESLA COULD APPEAL THE RULINGMusk and Tesla's board could appeal and try to reverse the ruling at the Delaware Supreme Court, a process that typically takes around a year.The case, which involved the largest-ever pay deal at a U.S. public company, raises issues that have rarely been addressed by Delaware judges, adding uncertainty to an appeal.For example, the trial court judge, Chancellor Kathaleen McCormick, found that Musk controlled the compensation negotiations, even though he owned only about 22% of Tesla's stock.In addition, Tesla has acknowledged that the June vote by shareholders to ratify Musk's pay was a \"novel\" legal tactic and has said it was unclear how it would be treated under Delaware law.TESLA COULD DEVISE A NEW PLANTesla's board could craft a new pay package, although that could be very expensive.The original plan, agreed to by Musk and the company in 2018, awarded him stock options if the company hit very aggressive performance and financial targets. The stock options allowed Musk to buy Tesla stock priced at the 2018 level. The company exceeded the targets, and Tesla's stock has risen 10-fold since then, making the options incredibly valuable.Tesla booked a cost of $2.6 billion when the 2018 plan went into effect. The company has said that a replacement plan for the same cost today would likely have to be less than 10% of the size of the 2018 plan.COULD TESLA JUST RESTORE THE OLD PLAN?Tesla could offer Musk the same 304 million stock options with the same $23.34 exercise price used in the 2018 plan. If shareholders wanted to challenge that, they would have to sue in Texas, where the company reincorporated this year, rather than the Court of Chancery in Delaware.But the company cannot escape accounting and tax implications.Tesla said putting the old plan back in place would require the company to take a $25 billion charge, according to securities filings.In addition, because the stock options would be incredibly valuable from the moment they are issued, they would be treated unfavorably for tax purposes as income. Musk could be taxed at the highest rate and pay a 20% penalty, meaning authorities could tax his new plan at 57%, according to an analysis by Schuyler Moore of Greenberg Glusker Fields Claman & Machtinger.MUSK COULD TRY TO SETTLE THE LAWSUITMusk could try to settle the lawsuit, which was brought by a Tesla shareholder, and accept a smaller portion of his pay package. However, that would contradict his track record of taking cases to trial rather than striking deals, even in the face of huge potential liability. It is unclear how McCormick would view a settlement at this stage in the litigation.","news_type":1,"symbols_score_info":{"TSLA":0.9}},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":377776585748688,"gmtCreate":1733267223379,"gmtModify":1733267228567,"authorId":3554184728100240,"author":{"id":3554184728100240,"idStr":"3554184728100240","authorId":3554184728100240,"name":"T90","avatar":"https://static.tigerbbs.com/64a844af127318de6f06837e04004a86","vip":1,"crmLevel":12,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":377538521997400,"type":1,"supId":0,"prevId":0,"content":"Tesla will appeal further... and will succeed in the end...","text":"Tesla will appeal further... and will succeed in the end...","html":"Tesla will appeal further... and will succeed in the end..."}],"langContent":"EN"}],"hasMoreComments":false,"newsSizeData":{"likeSize":6,"commentSize":2,"repostSize":3,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"isCrawlerRequest":true}