BRUTAL: Corrupt Judge Gets Destroyed Over Elon Musk Compensation Ruling

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BRUTAL: Corrupt Judge Gets Destroyed Over Elon Musk Compensation Ruling

A Delaware judge's ruling against Elon Musk's $55-56 billion compensation package is likely to be overturned by the Delaware Supreme Court, as it is seen as biased and sets a troubling precedent for corporate law

Questions to inspire discussion

Legal and Corporate Implications

🏛️ Q: What's the upcoming Delaware Supreme Court hearing about?
A: The Delaware Supreme Court has scheduled oral arguments for October 15th to review the Delaware Chancery Court's decision to strike down Elon Musk's 2018 compensation package, which was approved by 70% of Tesla shareholders.

🏢 Q: How might the court's decision impact Delaware's corporate landscape?
A: If upheld, the decision could lead to a mass exodus of corporations from Delaware, with companies potentially reincorporating in states with more shareholder-friendly laws, such as Texas.

💼 Q: What's the potential risk for companies remaining in Delaware?
A: Companies staying in Delaware could face a new risk of derivative lawsuits, potentially needing to reincorporate in different states to avoid this risk.

Compensation Package Details

💰 Q: What were the key components of Elon Musk's 2018 compensation package?
A: The package consisted of 12 tranches, each equal to 1% of Tesla's outstanding common stock, with payments contingent on boosting the company's market capitalization by $50 billion for each installment.

📈 Q: What was the total value growth required for Musk to earn all tranches?
A: Musk needed to grow Tesla's value from $45 billion to $645 billion, which he achieved, receiving stock worth about $56 billion in 2025.

Criticisms and Controversies

⚖️ Q: What criticism has been leveled at the judge's decision?
A: The decision has been called ideologically motivated and incoherent, with the judge demonstrating potential bias by questioning if the "world's richest man needs" compensation.

💸 Q: What are the lawyers who pursued the case against Musk's compensation seeking?
A: The lawyers are asking for $5-6 billion in payment, despite the case being brought on behalf of a client with only 9 shares in Tesla.

Future Implications

🤖 Q: How might the court's decision affect Musk's future compensation as AI advances?
A: If overturned, it could pave the way for a new compensation plan for Elon Musk as the AI era begins, potentially setting up a leader who produces extraordinary results for future success.

🌍 Q: Who disagrees with compensating leaders who produce extraordinary results?
A: According to the video, the only people who disagree are those who do not believe they can add value in any area of their lives.

Economic Impact on Delaware

💲 Q: How has the decision already affected Delaware?
A: The ruling has reportedly led to massive tax hikes and increases in school fees in Delaware due to the corporate exodus.

Legal Doctrine Critique

📜 Q: What's the issue with the Court of Chancery's transaction-specific controller doctrine?
A: The doctrine is criticized as incoherent, implying that a fair price for Tesla's deal with Musk should have been zero, which would be unacceptable to Musk and Tesla shareholders.

Shareholder Approval

📊 Q: What percentage of Tesla shareholders approved Musk's compensation package?
A: The compensation package was approved by 70% of Tesla shareholders.

 

Key Insights

Legal and Corporate Implications

🏛️ The Delaware Supreme Court has scheduled oral arguments for October 15th to review Judge Kathleen McCormack's decision to strike down Elon Musk's 2018 compensation plan, which was overwhelmingly approved by Tesla shareholders.

🏢 A mass exodus of corporations from Delaware has occurred, with many reincorporating in Texas and other states to avoid the incremental risk of future derivative lawsuits.

🤔 A think tank published an article condemning the judge's decision as outrageous, incoherent, and ideologically motivated against billionaire Elon Musk.

Compensation Package Details

💰 Musk's compensation package consisted of 12 tranches of 1% of Tesla's outstanding common stock, with each tranche requiring a $50 billion increase in market capitalization.

📈 The package required Musk to grow Tesla's value from $45 billion to $645 billion to receive stock worth $56 billion, a fraction of the potential $600 billion gain to shareholders.

Criticism of the Court Decision

⚖️ The Delaware Court of Chancery's decision was deemed a serious mistake affecting more than just Tesla and Musk, potentially damaging the integrity of the state's courts.

🧠 The judge's reasoning was described as palpably brain-damaged and implying that a fair price for Tesla's deal with Musk should have been zero.

Future Implications

🚀 If the Delaware Supreme Court overturns the decision, it will pave the way for a new compensation plan for Elon Musk as the AI era begins.

🌟 The original compensation package was results-based and extraordinary, designed to produce extraordinary results benefiting all Tesla shareholders.

Historical Context

💼 Musk was awarded the compensation package in 2018 when Tesla was on the verge of bankruptcy.

🚗 Each tranche of the compensation package required a market cap increase greater than that of General Motors at the time.

 

 

#ElonMusk #Tesla #Compensation

XMentions: @Tesla @HabitatsDigital @StevenMarkRyan @elonmusk

Clips

  • 00:00 🤯 Delaware Supreme Court to review and likely overturn judge's ruling that struck down Elon Musk's $55 billion 2018 compensation plan.
    • The Delaware Supreme Court has scheduled oral arguments for October 15th to review and likely overturn a judge's "utterly absurd" decision that unfairly struck down Elon Musk's 2018 compensation plan.
    • A judge's ruling on Elon Musk's compensation package will likely pave the way for his next ambitious package with extraordinary incentives and growth targets.
    • Delaware Chancery Court Judge Kathleen McCormack ruled that Elon Musk's 2018 $55 billion pay package was "unfathomable" and questioned whether it was necessary to retain him and achieve company goals.
  • 02:34 ⚖ Elon Musk's compensation ruling by a Delaware judge raises concerns about potential appeals and implications for corporate law, as it could establish a troubling precedent for shareholder incentives.
    • Elon Musk and others are questioning a Delaware judge's ruling on his compensation, which may be appealed to the Delaware Supreme Court, potentially threatening Delaware's historical advantage in corporate law.
    • A judge's unprecedented ruling allowing Elon Musk's compensation package to be reconsidered has significant implications and warrants close attention.
    • Lawyers are seeking $5-6 billion in payment for a derivative suit in Delaware, sparking concerns about a "bounty hunter system" where a small shareholder can lead to a multi-billion dollar award.
    • The judge's ruling on Elon Musk's compensation package is concerning, as it may set a new norm in Delaware where companies are penalized for offering shareholder-aligned incentive packages that benefit when the stock price rises.
  • 06:25 ⚖ A Delaware judge's shocking ruling against Elon Musk's compensation could drive corporations to leave the state, risking increased taxes for residents and undermining established legal precedents.
    • The speaker finds a Delaware judge's ruling on Elon Musk's compensation shocking, highlighting a concerning side of Delaware's corporate law.
    • A judge's ruling on Elon Musk's compensation is shocking because it contradicts established legal precedent and shareholder-friendly interpretations, despite 70% shareholder approval.
    • If the Delaware Supreme Court upholds the ruling denying Elon Musk compensation, corporations may significantly flee the state, reincorporating in more friendly states to avoid similar risks of future derivative lawsuits.
    • A corrupt judge's ruling on Elon Musk's compensation led to a mass exodus of corporations from Delaware, potentially causing the state to increase taxes and fees on residents to make up for lost revenue.
    • A Delaware court wrongly stripped billions from Elon Musk's compensation package using an incoherent legal doctrine in a ruling described as ideologically motivated and irrational.
  • 11:47 ⚖ A judge's ruling against Elon Musk's $56 billion compensation package is deemed biased and incoherent, reflecting an "Elon bad" narrative rather than a fair evaluation.
    • A judge's ruling against Elon Musk's compensation package is criticized as incoherent and driven by a biased "Elon bad" narrative, rather than a fair assessment of the package's merits.
    • In 2018, Tesla shareholders approved a compensation package for Elon Musk that would pay out 12 tranches of stock worth $56 billion if he grew the company's market cap from $45 billion to $645 billion.
    • The speaker, a Tesla shareholder, supported Elon Musk's compensation package, voting in favor of it via proxy, as they believed it aligned with the principle of "eat what you kill".
  • 14:45 🤯 Delaware judge rules Elon Musk's $56 billion Tesla compensation package unfair, disregarding 77% shareholder approval.
    • A judge ruled that Elon Musk's $56 billion stock-based compensation package from Tesla was unfair, despite Musk increasing the company's valuation from $45 billion to over $1 trillion.
    • A Delaware court rejected a ratification vote by Tesla shareholders to reinstate Elon Musk's compensation package, despite 77% of voting shares approving it.
    • Judge claims to know best, disregarding the person's will, vote, and desires.
  • 17:39 🤯 Delaware court criticized for potentially biased Elon Musk compensation ruling, sparking concerns about state's business environment.
    • Delaware's Court of Chancery made a mistake in an Elon Musk compensation ruling, potentially causing public companies to leave the state due to concerns over the court's objectivity.
    • Courts apply a high standard, the business judgment rule, to directors' decisions, but a stricter fairness review if directors have a conflict of interest, such as in Elon Musk's 2018 compensation package case.
    • Shareholders, not a judge, should decide on Elon Musk's compensation package to avoid issues with unfair rulings.
  • 20:11 🤯 Delaware Supreme Court may overturn ruling that denied Elon Musk's $56 billion compensation, potentially restoring judicial integrity and fair precedent for executive pay.
    • The Court of Chancery's new "transaction specific controller doctrine" is incoherent, particularly in its application to Elon Musk's compensation package.
    • The Delaware Supreme Court's potential overturn of a ruling denying Elon Musk's $56 billion compensation from Tesla will restore the state's judicial integrity and set a fair precedent for compensating leaders who produce extraordinary results.
    • Instead of self-reflection and personal growth, people criticize Elon Musk's compensation, preferring an easy way out as social media critics rather than working to add value and earn more.

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Duration: 0:23:1

Publication Date: 2025-08-14T10:51:10Z

WatchUrl: https://www.youtube.com/watch?v=dmeEpcvjwsI

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