International
Musk to testify at trial over his $50 bn Tesla compensation
| 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.
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”.
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.
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
Claudia Sheinbaum: Operation Against ‘El Mencho’ Was Based on Pending Arrest Warrants
Mexico’s President Claudia Sheinbaum on Wednesday rejected claims that the military operation that resulted in the death of Nemesio Oseguera Cervantes, known as “El Mencho,” leader of the Jalisco New Generation Cartel (CJNG), was carried out under pressure from the United States government.
Sheinbaum explained that the deployment of federal forces was aimed at executing outstanding arrest warrants against Oseguera Cervantes, who was considered one of the most wanted criminals in both Mexico and the United States.
“That was not the objective (to ease pressure from the United States). It is very important, and I want to repeat it. This individual had an arrest warrant, or several,” Sheinbaum said, referring to the operation conducted on February 22.
According to the president, the initial goal was to capture Oseguera Cervantes, but military forces responded after coming under attack during the intervention.
“The operation was to detain him. The problem is that they were attacked — the Secretariat of National Defense — and they responded at that moment,” she said.
The president insisted that the action was not carried out in response to external demands, although she acknowledged intelligence cooperation with the United States.
“It was not done in any way because of pressure from the United States, not at all. Of course, there was intelligence information from the United States that was used specifically,” she concluded.
International
Spain Denies Any Agreement to Cooperate with U.S. Military in Iran Operations
Spain’s Foreign Minister José Manuel Albares on Wednesday firmly denied that Madrid has agreed to cooperate with the U.S. military in operations against Iran, contradicting statements made minutes earlier by White House Press Secretary Karoline Leavitt.
“I categorically deny it,” Albares said in a radio interview cited by EFE. “The position of the Spanish government regarding the war in the Middle East, the bombings in Iran, and the use of our bases has not changed by a single comma.”
Earlier in the day, Leavitt told reporters that Spain had “agreed to cooperate with the United States military in recent hours,” following President Donald Trump’s threat to impose a trade embargo on Madrid. Trump had warned of economic measures after Spain reportedly refused to allow the Pentagon to use facilities at Spanish bases for operations related to Iran.
“I have no idea what that could be referring to or where it could be coming from,” Albares said, insisting that Spain’s position “has not changed at all” and therefore “remains absolutely unchanged.” He added that he had “no desire” and “almost no time” to speculate about the White House spokesperson’s remarks.
Albares reiterated Spain’s “No to war” stance, which he said had been clearly and forcefully expressed by Prime Minister Pedro Sánchez in an institutional address. According to the foreign minister, that position has been supported by “many European colleagues.”
International
White House Says Spain Agrees to Cooperate with U.S. Military After Trump Threatens Trade Embargo
White House Press Secretary Karoline Leavitt said Wednesday that Spain has agreed “in recent hours” to cooperate with the U.S. military, following President Donald Trump’s threat to impose a trade embargo on Madrid.
Trump had warned of potential commercial measures after Spain reportedly refused to allow the Pentagon to use facilities at Spanish military bases for operations related to Iran.
“With respect to Spain, I think you heard the president’s message yesterday loud and clear, and I understand that in recent hours they have agreed to cooperate with the United States military,” Leavitt said during a press briefing.
She added that the U.S. military is currently coordinating with its counterparts in Spain. However, the president expects broader support.
“The president expects that all of Europe, all of our European allies, of course, will cooperate in this important mission — not only for the United States, but also for Europe,” Leavitt said.
Her remarks came in response to questions about Spain’s position and its role as a U.S. ally amid rising tensions surrounding operations involving Iran.
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