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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

Pope Francis meets former Gaza hostages

Pope Francis met on Thursday at the Vatican with 16 Israelis who had been held hostage in Gaza for months by the Islamist group Hamas, according to the official Vatican news website.

The group consisted of ten women, four men, and two children, as reported by the same source. Several of the former hostages showed the Argentine pontiff banners or photos of their loved ones who remain in captivity.

Francis had previously met with the families of hostages in April this year and November 2023, but this was the first time he had met with individuals who had personally endured captivity.

Since the conflict between Israel and Hamas began, the pope has repeatedly called for the immediate release of Israeli hostages, while also condemning the suffering of the Palestinian population.

The war erupted on October 7, 2023, when Islamist militants attacked southern Israel, killing 1,206 people, mostly civilians, and kidnapping 251, according to an AFP tally based on official Israeli figures that include hostages who died in captivity.

Of the kidnapped, 97 are still being held in Gaza, but the Israeli military estimates that 34 of them have died.

The military offensive launched by Israel in response has killed at least 43,736 people in the Gaza Strip, mostly civilians, according to data from the Ministry of Health in the Hamas-governed territory.

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International

Israeli airstrikes on Damascus kill 15 and injure 16, including women and children

Israeli forces carried out airstrikes on residential buildings in the Syrian capital, Damascus, and its surroundings on Thursday, resulting in at least 15 deaths and 16 injuries, according to Syria’s Ministry of Defense and state television.

The ministry stated that around 3:20 p.m. local time (12:20 GMT), the Israeli military launched an aerial attack from the direction of the occupied Golan Heights, targeting several residential buildings in the Mazzeh neighborhood in western Damascus and the Qudsaya suburb to the northwest of the capital.

The airstrikes “resulted in the death of 15 people and injuries to 16 others, including women and children,” based on initial estimates, in addition to significant damage to private property and civilian buildings, the ministry added.

Meanwhile, state television reported Israeli airstrikes on three buildings in Mazzeh and another on a building in an educational complex located in a residential area of Qudsaya.

Following the strikes, loud explosions were heard throughout the city, and thick plumes of smoke could be seen rising from the targeted locations. Ambulances and emergency services rushed to the scene to attend to the victims.

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International

Drug trafficker dies after boat collision with Guardia Civil Vessel in Sanlúca

Three people were on the boat that collided with a Guardia Civil vessel around midnight at the mouth of the Guadalquivir River in Sanlúcar de Barrameda, near the Andalusian city of Cádiz, a spokesperson for the Civil Guard reported.

Two officers sustained “contusions,” the spokesperson explained.

The drug traffickers managed to bring the boat to shore, where one of them was “abandoned” severely injured. The other two fled.

The Civil Guard officers attempted to resuscitate the victim before transporting him to Sanlúcar de Barrameda, but he ultimately died early in the morning.

The other two suspects took advantage of the officers’ absence while they were taking the victim and returned to set their boat on fire.

The collision occurred very close to the site of another accident on September 1, where a drug trafficker died following a Guardia Civil pursuit.

The suspects’ boat traveled “400 meters” before crashing head-on and “at full speed” into the riverbank, where a hundred bundles of hashish were found.

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