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.
Central America
Guatemala’s Attorney General Consuelo Porras Loses Bid for Constitutional Court Seat
Guatemala’s attorney general, Consuelo Porras, who has been sanctioned by the United States over corruption allegations, lost a key vote on Monday in which a public university selected two of the 10 magistrates for the country’s highest constitutional court. However, she could still seek a seat through another nominating body.
The election of five full magistrates and five alternates to the Corte de Constitucionalidad (CC) is taking place gradually over more than two months and is considered crucial in the ongoing struggle for control of Guatemala’s judiciary, which critics say has long been influenced by a political and economic elite accused of corruption.
According to results announced at a press conference, the governing council of the Universidad de San Carlos de Guatemala (USAC) rejected Porras, who had applied as either a full or alternate magistrate, and instead chose two candidates aligned with the university rector. The vote was held at a hotel in Antigua, about 35 kilometers from the capital.
Despite the setback, Porras — whose term as attorney general ends on May 16 — could still be nominated to the Constitutional Court by the Corte Suprema de Justicia, which appoints two magistrates. The remaining six are selected by the president, the bar association and Congress.
“It’s always a possibility,” the 72-year-old lawyer said days earlier when asked by reporters whether she would seek nomination through another institution if she lost the USAC vote.
Porras has been sanctioned by Washington and the European Union for allegedly attempting two years ago to block the inauguration of President Bernardo Arévalo and for pursuing legal actions against anti-corruption prosecutors, judges, journalists and social leaders since taking office in 2018.
The USAC vote was controversial because most members of the university’s governing council are serving beyond the expiration of their terms. Students, academics and social activists staged protests against Porras’ candidacy.
International
Florida judge sets 2027 trial in Trump’s $10 billion lawsuit against BBC
A federal judge in Florida has scheduled February 2027 for the trial in the lawsuit filed by U.S. President Donald Trump against the BBC, in which he is seeking $10 billion in damages for defamation.
Trump accuses the British broadcaster of airing a misleading edit of a speech he delivered on January 6, 2021, which, he says, made it appear that he explicitly urged his supporters to attack the U.S. Capitol in Washington.
The president filed the suit in December in federal court in Florida, alleging defamation and violations of a law governing business practices when the program was broadcast ahead of the 2024 election.
Trump is seeking $5 billion in damages for each of the two claims.
Lawyers for the BBC unsuccessfully asked the court to dismiss the case, arguing that Trump had not suffered a “legally recognizable harm,” since the investigative program Panorama, which included the edited footage, aired outside the United States.
International
Head-of-state diplomacy key to guiding China–U.S. ties, Beijing says
Head-of-state diplomacy plays an irreplaceable strategic guiding role in China–United States relations, Chinese Foreign Ministry spokesperson Lin Jian said on Thursday during a regular press briefing, when asked about high-level exchanges between the two sides.
Lin added that in a recent phone call, U.S. President Donald Trump once again expressed his intention to visit China in April, while Chinese President Xi Jinping reiterated his invitation.
Both sides remain in communication regarding the matter, the spokesperson said.
Lin noted that the essence of China–U.S. economic and trade ties lies in mutual benefit and win-win outcomes.
“Both parties should work together to implement the important consensus reached by the two heads of state, injecting greater certainty and stability into China–U.S. economic and trade cooperation, as well as into the global economy,” he said.
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