News JVTech “Absolute corruption” Once again, Elon Musk is annoyed because he will not receive his huge check promised by Tesla
Published on 06/12/2024 at 22:30
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American justice has once again rejected Elon Musk’s $55.8 billion compensation plan at Tesla, despite shareholder approval. The CEO, furious, accuses the judge of corruption and announces he will appeal. This decision raises crucial questions about corporate governance and the role of the courts.
A second legal setback for Elon Musk
Elon Musk, the richest man in the world, suffers a new legal setback. Judge Kathaleen McCormick of Delaware rejected, for the second time, her colossal $55.8 billion compensation plan at Tesla. This decision, taken last Monday, comes despite the approval of 72% of shareholders, fueling the debate on the judicial power facing the decisions of general meetings.
The first cancellation of the plan, last January, had already caused a stir. Judge McCormick then criticized the lack of independence of the committee which approved the remuneration, composed solely of people close to Musk. Despite this, Tesla decided to resubmit the same plan to shareholders, a risky strategy that did not pay off.
The judge criticizes the stubbornness of Tesla and Musk
In her new decision, Judge McCormick reiterated her criticism of the initial approval process, clarifying that her intention was not to prevent any remuneration for Elon Musk, but to denounce the method used. She criticized Tesla and its CEO for their stubbornness in submitting the same plan without substantial changes, calling their argument “smoky theories.”
Elon Musk’s reaction was immediate: on Tesla has announced that it will appeal the decision.
Beyond compensation: crucial questions about governance
The case goes beyond the simple framework of remuneration deemed excessive. It raises fundamental questions about the balance of power in corporations, the role of judges in overseeing shareholder decisions, and the transparency of executive compensation processes. The staggering amount of the plan, even linked to Tesla’s long-term performance, has fueled criticism of salary inequalities.
This legal saga comes at a crucial time for Elon Musk. Appointed to a government position under Trump, he combines responsibilities at the head of several companies (Tesla, SpaceX, xAI, Neuralink) and remains very active on social networks. This multiplication of commitments raises questions about the compatibility of its multiple roles.
At the same time, Musk is involved in a dispute with OpenAI, which he accuses of having betrayed his initial vision by becoming a for-profit company. These two trials illustrate the tensions between personal ambition, economic interests and ethical concerns. Time will tell if these legal setbacks will affect his ambitious plans, but one thing is certain: the Elon Musk saga continues to captivate the world.
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