International

Musk to testify at trial over his $50 bn Tesla compensation

Photo: Hoy Dinero

| By AFP | Juliette Michel |

Tesla tycoon Elon Musk will take the stand on Wednesday as part of a trial over his $50 billion pay package as CEO of the electric car giant.

Musk will testify in the same Delaware court where he faced a lawsuit by Twitter to make sure he went through with his buyout of the social platform.

The $44 billion purchase of Twitter has put Musk under a deluge of scrutiny after he conducted massive layoffs, scared advertisers and opened the platform to fake accounts.

The unrelated Tesla case is based on a complaint by shareholder Richard Tornetta, who accused Musk and the company’s board of directors of failing in their duties when they authorized the pay plan.

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Tornetta alleges that Musk dictated his terms to directors who were not sufficiently independent from their star CEO to object to a package worth around $51 billion at recent share prices.

The Tesla shareholder accuses Musk of “unjustified enrichment” and asked for the annulment of a pay program that helped make the entrepreneur the richest man in the world.

According to a legal filing, Musk earned the equivalent of $52.4 billion in Tesla stock options over four and a half years after virtually all of the company’s targets were met.

When the plan was adopted it was valued at a total of $56 billion.

The non-jury trial began Monday with testimony from Ira Ehrenpreis, head of the compensation committee on Tesla’s board of directors, who said the targets set were “extraordinarily ambitious and difficult”.

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Ehrenpreis argued that the board wanted to spur Musk to focus on Tesla at a time when the company was still struggling to gain traction.

‘Highly unusual’

The trial will run through Friday and is being presided over by Judge Kathaleen McCormick, the same judge who was to preside over the Twitter case.

There is no deadline for her decision which could take months.

It’s “highly unusual” for this kind of case to be brought to trial, Jill Fisch, Law professor at the University of Pennsylvania, told AFP.

“There aren’t all that many successful challenges to executive compensation (as) the courts have typically treated this as a business decision,” she added.

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But the court found in this case that Musk’s ownership of about 22 percent of Tesla and his role as CEO “could have an undue impact” on the board and other shareholders, she noted.

Musk canceled an in-person appearance on Sunday at an event on the sidelines of the G20 in Bali to be in court.

Asked why he had not traveled to the tropical Indonesian island, the new Twitter boss joked that his “workload has recently increased quite a lot” after his takeover of the social media giant.

International

Nine People Killed in Two Armed Attacks in Manabí, Ecuador

At least nine people were killed Monday in two nearly simultaneous armed attacks in the province of Manabí, located on Ecuador’s Pacific coast, one of the areas hardest hit by violence in the country, according to the National Police.

The first attack left seven people dead and took place in Camarones, a rural area of the Jama canton. The second occurred in the sector known as La Y, in the seaside town of Canoa, part of the San Vicente canton, where two people were killed.

According to preliminary reports, both incidents occurred early Monday morning when armed men intercepted the victims. Authorities said the motives behind the attacks remain under investigation.

The assault in Camarones happened around 1:15 a.m. local time, when a group of armed individuals stormed a ranch in the area. The victims have not yet been officially identified.

About 15 minutes later, in Canoa, two men traveling in a motorized taxi were intercepted by armed suspects riding motorcycles and shot. One of the victims was identified as a 28-year-old passenger, while the identity of the driver has not yet been confirmed.

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The attacks occurred just days after another multiple homicide on February 12 at a ranch in San Juan de las Cucarachas, a rural area of the Santa Ana canton in Manabí, which left six people dead.

Manabí has been experiencing escalating insecurity linked to disputes among organized crime groups, including drug trafficking networks and territorial control conflicts. In response, the government has maintained a state of emergency in the province since August to address the surge in violence attributed to these criminal organizations.

International

Over 40 Million Affected by Major Snowstorm in Northeastern U.S.

More than 40 million people across the northeastern United States are facing a new major snowstorm this Monday, including residents of New York City, where local authorities have shut down roads to traffic.

The storm triggered widespread flight cancellations early in the morning and caused power outages affecting thousands of homes and businesses throughout the region.

New York City Mayor Zohran Mamdani banned non-essential vehicle travel at least until noon and ordered the closure of public schools as a precautionary measure. Authorities in neighboring states, including New Jersey and Rhode Island, imposed similar restrictions to ensure public safety.

This marks the second major winter storm to hit the East Coast in less than a month, leading to growing frustration among residents.

“I’m fed up. I don’t want to see another snowflake,” said Vincent Greer, a resident of Wildwood, New Jersey, as he shoveled accumulated snow from in front of his building.

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Officials continue to urge residents to remain indoors, avoid unnecessary travel, and monitor local advisories as crews work to clear roads and restore power.

International

Ninth Victim Recovered After Deadliest U.S. Avalanche in Decades

Rescue teams in California on Saturday recovered the body of the ninth and final victim of a deadly avalanche in the Sierra Nevada mountains, according to the local sheriff’s office.

The avalanche struck a group of 11 skiers and four guides on Tuesday as they were returning from a three-day backcountry trip near Castle Peak, a 2,777-meter (9,111-foot) mountain and popular tourist destination on the U.S. West Coast.

Six people were rescued alive on Tuesday. Authorities said the incident marks the deadliest avalanche in the United States since 1981.

“All nine individuals who lost their lives in the February 17 Castle Peak avalanche have been safely recovered from the mountain,” the Nevada County Sheriff’s Office said in a statement.

“There are no words that can truly capture the magnitude of this loss, and our hearts grieve alongside the families affected by this catastrophic event,” Sheriff Shannan Moon said.

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Officials had warned on Thursday that search operations would likely continue through the weekend due to severe weather conditions in the area.

Survivors were able to call for help shortly after the avalanche occurred. However, near-zero visibility and the risk of additional snow slides prevented rescue teams from reaching them for several hours.