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

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.

International

Spain’s Prime Minister pledges transparency after train crash kills at least 39

Spanish Prime Minister Pedro Sánchez pledged on Monday to ensure “absolute transparency” regarding the causes of a train crash that killed at least 39 people on Sunday in southern Spain, warning that the death toll could still rise.

The fatal accident occurred in the Andalusia region, where the number of confirmed deaths reached 39 by Monday morning, according to a spokesperson for the Ministry of the Interior.

Authorities were preparing to deploy heavy machinery to lift several derailed train cars. “We are waiting for cranes to be installed this morning to lift cars one, two and three of the Alvia train, which suffered the most damage,” said Andalusian regional president Juanma Moreno Bonilla on regional television. “It is likely that once they are lifted, we may find more victims,” he added.

The disaster also left more than 120 people injured. As of Monday afternoon, 43 victims remained hospitalized, including 12 in intensive care, according to emergency services.

International

Over 160 christian worshippers kidnapped in Kaduna Church attacks

More than 160 Christian worshippers were abducted on Sunday during coordinated attacks carried out by armed gangs on two churches in a remote village in Kaduna State, northern Nigeria, according to a cleric and a United Nations report accessed by AFP on Monday.

Nigeria, Africa’s most populous nation, has witnessed a renewed surge in mass kidnappings since November, prompting the United States government to carry out military strikes on Christmas Day in the northwestern state of Sokoto.

U.S. President Donald Trump accused Nigerian armed groups of targeting Christians, describing the violence as a form of “genocide” against the religious community.

According to Reverend Joseph Hayab, president of the Christian Association of Nigeria in the north, the attackers arrived in large numbers, blocked access to the churches, and forced worshippers to flee into nearby forests.

“The attackers came in large numbers, sealed off the entrances to the churches, and drove the faithful into the bush,” Hayab told AFP.