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

Trump Floats “Friendly Takeover” of Cuba Amid Rising Tensions

U.S. President Donald Trump said Friday that his administration is considering what he described as a “friendly takeover” of Cuba, as Washington continues to increase pressure on the island’s communist government.

“The Cuban government is talking to us and they have very serious problems, as you know. They have no money, they have nothing at this moment, but they are talking to us and maybe we will see a friendly takeover of Cuba,” Trump told reporters as he departed the White House for a trip to Texas.

Earlier in the week, U.S. Secretary of State Marco Rubio said Cuba needed a “radical change,” shortly after Washington eased restrictions on oil exports to the island for what officials described as “humanitarian reasons,” amid a deep economic crisis.

The United States has imposed an energy blockade on Cuba since January, citing what it calls an “extraordinary threat” posed by the communist-run island, located roughly 150 kilometers (90 miles) off the coast of Florida, to U.S. national security.

International

Argentina’s Senate Reviews Milei-Backed Labor Overhaul

Argentina’s Senate on Friday began reviewing the Labor Modernization Law promoted by the administration of President Javier Milei, a proposal that would significantly reshape labor rules across the country.

The upper chamber opened its final discussion of the contentious initiative, which revises the method used to calculate severance payments — lowering the amounts owed in dismissal cases — and introduces an “hour bank” mechanism that allows overtime to be offset with paid leave rather than extra wages.

The legislation also broadens the classification of essential services, a change that would place new limits on the right to strike in designated sectors.

The bill was initially approved by the Senate on February 11 and then moved to the Chamber of Deputies, where lawmakers passed it with amendments. It has now returned to the Senate for definitive approval.

Outside the Congress building in Buenos Aires, workers, trade unions and left-wing organizations staged demonstrations beginning at midday. The gathering later thinned out amid reports of disturbances and a strong police presence. Security forces had secured the area surrounding the legislature since early morning hours.

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Union leaders contend that the reform weakens labor protections, while many business representatives back the measure but stress that sustainable formal employment will require economic expansion, improved credit conditions, greater investment and a more dynamic domestic market.

International

Federal Judge Blocks Trump Policy Allowing Deportations to Third Countries

A federal judge ruled on Wednesday that the policy of U.S. President Donald Trump’s administration allowing immigration authorities to deport foreign nationals to third countries without prior notice or the opportunity to object is unlawful. The decision marks another legal setback for the administration on immigration matters.

Judge Brian Murphy of the U.S. District Court for the District of Massachusetts struck down the regulation issued last year, which stated that Immigration and Customs Enforcement (ICE) was not required to notify migrants if they were to be sent to countries other than the one listed in their removal order, provided that receiving nations offered assurances they would not face persecution or torture.

Murphy ordered the measure vacated but granted a 15-day delay before the ruling takes effect, giving the Trump administration time to file an appeal.

In his decision, the judge concluded that the policy violates federal immigration law and migrants’ due process rights. He also questioned the lack of transparency surrounding the alleged assurances provided by receiving countries, stating that “no one really knows anything about these supposed ‘assurances.’” He added, “It is not right, and it is not lawful.”

The ruling follows several legal disputes involving deportations to third countries. Last year, the executive branch deported more than 200 Salvadorans to a maximum-security prison in El Salvador, invoking an old wartime law. The White House also held talks with Costa Rica, Panama, and Rwanda about receiving migrants who are not citizens of those countries.

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In May, the same judge determined that the government violated a court order when it attempted to remove a group of immigrants with criminal records to South Sudan without prior notice or an opportunity to raise claims of fear of persecution.

Although President Donald Trump took the case to the U.S. Supreme Court, which temporarily allowed the deportations to resume while a final decision was pending, the White House is expected to again appeal to higher courts to overturn this latest judicial ruling.