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

Germany says football bodies alone will decide on possible World Cup boycott

The German Football Association (DFB) and FIFA will decide with full “autonomy” whether to boycott the upcoming World Cup, which will be hosted mainly by the United States in six months, following threats made by former U.S. president Donald Trump, the German government told AFP on Tuesday.

Trump has threatened to seize Greenland and impose higher tariffs on European countries that oppose the plan, raising political tensions between the United States and Europe.

“This assessment therefore lies with the relevant federations, in this case the DFB and FIFA. The federal government will respect that decision,” Sports State Secretary Christiane Schenderlein said in a statement emailed to AFP.

AFP had asked the German government about the possibility of a boycott of the World Cup to be jointly hosted by Canada, the United States and Mexico from June 11 to July 19.

“The federal government respects the autonomy of sport. Decisions regarding participation in major sporting events or possible boycotts fall exclusively within the responsibility of the relevant sports federations, not the political sphere,” said Schenderlein, a member of the conservative CDU, the party of Chancellor Friedrich Merz.

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International

Daily Mail publisher insists reports relied on legitimate sources amid privacy trial

Two British tabloids accused of phone hacking and other forms of “unlawful information gathering” against Prince Harry and six other individuals, including singer Elton John, insisted on Tuesday that their reporting relied on legitimate sources.

Associated Newspapers Ltd (ANL), the publisher of the Daily Mail and The Mail on Sunday, sought to rebut allegations of privacy violations through illegal methods on the second day of trial at London’s High Court, following a lawsuit filed by the seven claimants.

Prince Harry, 41, who attended court hearings on both Monday and Tuesday, could be called to testify starting Wednesday in a trial expected to last up to nine weeks.

Lawyers for the claimants said the alleged illegal activities took place between 1993 and 2011, with some incidents reportedly extending as late as 2018. They argue that the tabloids hired private investigators to intercept phone calls and obtain confidential information, including detailed phone records, medical histories, and bank statements.

However, Anthony White, counsel for ANL, told the court that the trial would show the company presents “a compelling account of a pattern of lawful source acquisition” for its articles.

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White added that the claims would require the court to believe that journalists and staff at the tabloids had engaged in widespread dishonesty, which the company strongly denies.

International

Death toll from southern Spain train crash rises to 40

The death toll from the train accident that occurred on Sunday in southern Spain has risen to 40, according to investigative sources cited by EFE on Monday afternoon.

Since early Monday, search operations have focused on the damaged carriages of a Renfe train bound for Huelva, which collided with the last derailed cars of an Iryo train traveling from Málaga to Madrid after it left the tracks.

The crash has also left more than 150 people injured. Of these, 41 remain hospitalized, including 12 in intensive care units at hospitals across the Andalusia region.

More than 220 Civil Guard officers are working at the site, searching the railway line and surrounding areas for key evidence to help identify victims and determine the causes of the accident.

The tragedy has revived memories of the deadliest railway disasters in Europe in recent decades. In Spain, the most severe occurred on July 24, 2013, when an Alvia train derailed near Santiago de Compostela, killing 80 people and injuring 130 others.

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At the European level, the worst rail disaster took place on June 3, 1998, in Eschede, northern Germany, when a high-speed train struck a bridge pillar at 200 kilometers per hour, resulting in 98 deaths and 120 injuries.