AUSTIN, Texas – Tesla will ask shareholders to approve the reinstatement of a $56 billion compensation package for CEO Elon Musk, which a Delaware judge rejected earlier this year, and move the electric car manufacturer’s headquarters from Delaware to Texas.

In a statement with federal regulators early Wednesday, the business stated that shareholders will vote on both measures at its annual meeting on June 13.

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Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge

The Tesla board of directors offered Musk an unprecedented compensation plan that could be worth $55.8 billion over ten years starting in 2018, but Chancellor Kathaleen St. Jude McCormick ruled in January that Musk is not eligible for it.

Five years ago, a Tesla shareholder lawsuit argued that the pay package should be void because Musk dictated it and forged agreements with directors who weren’t impartial to him.

Musk announced a month after the judge’s decision that he would try to relocate Tesla’s corporate listing to Texas, where he has already relocated the company’s headquarters.

Almost immediately after the judge’s order, Musk moved Neuralink, his privately held brain implant company, from Delaware to Nevada.

Tesla met all of the operational and stock value benchmarks outlined in a 2018 CEO pay package, according to Chairperson Robyn Denholm in a letter to shareholders this week. She also stated that Musk has met the automaker’s growth expectations.

“Because the Delaware Court second-guessed your decision, Elon has not been paid for any of his work for Tesla for the past six years, which has helped to generate significant growth and stockholder value,” Denholm said. “That strikes us — and the many stockholders from whom we already have heard — as fundamentally unfair, and inconsistent with the will of the stockholders who voted for it.”

According to a regulatory filing, Tesla delivered 1.8 million electric vehicles worldwide in 2023. However, the value of its shares has dropped sharply this year as sales of electric vehicles fall.

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Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge

Future growth is still being determined, and it may be difficult to persuade shareholders to support a large pay package in a market where competition has increased globally, and demand for electric vehicle sales is declining. Shareholders will also be asked to submit a nonbinding advisory vote on future CEO pay.

Tesla’s stock has lost over one-third of its worth this year as dramatic price cuts have yet to attract new purchasers. The business said it shipped 386,810 automobiles from January to March, about 9% fewer than last year.

Musk’s package was valued at more than $55.8 billion at the time of the Delaware court verdict, but the court may have cost the erratic CEO more than $10 billion due to the company’s stock decline this year. According to the report, Musk’s 2018 remuneration totaled $44.9 billion at the close of trading on April 12.

Since last year, Tesla has reduced prices by up to $20,000 on some models. The price decreases caused the prices of used electric vehicles to fall, reducing Tesla’s profit margins.

Tesla announced this week that it would lay off nearly 10% of its workforce, or approximately 14,000 individuals.

Following receipt of a report from a special committee under the direction of one board member, Kathleen Wilson-Thompson, Tesla’s board stated in the filing that it sought shareholder approval of Musk’s 2018 compensation package.

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Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge

The board stated that if a significant vote is cast against future executive pay packages, “we will consider our stockholders’ concerns, and the compensation committee will evaluate whether any actions are necessary to address those concerns.”

Tesla Inc. shares, which fell another 8% this week, were marginally down in trade shortly after Wednesday’s opening bell.

SOURCE – (AP)

BOSTON — Microsoft said Friday that it is still working to evict the elite Russian government hackers who broke into senior business officials’ email accounts in November and are attempting to enter consumer networks using stolen access data.

According to the software giant’s blog and regulatory filing, the hackers from Russia’s SVR foreign intelligence service used data gained during the intrusion, which was exposed in mid-January, to compromise some source-code repositories and internal systems.

Microsoft Says It Hasn’t Been Able To Shake Russian State Hackers

A corporate official declined to specify the source code and capabilities the hackers gained to further attack customers and systems. Microsoft claimed Friday that hackers obtained “secrets” from email contacts between the business and certain customers, including cryptographic secrets like passwords, certificates, and authentication keys, and that it was contacting them “to assist in mitigating measures.”

Hewlett Packard Enterprise, a cloud computing business, revealed on January 24 that it was also an SVR hacking victim and had been notified of the breach — by whom it would not say — two weeks earlier, coinciding with the revelation that it had been compromised.

“The threat actor’s ongoing attack is characterized by a sustained, significant commitment of the threat actor’s resources, coordination, and focus,” the company said Friday, adding that it may be utilizing acquired data “to accumulate a picture of areas to attack and enhance its ability to do so.” According to cybersecurity experts, Microsoft’s admission that the SVR hack had not been contained highlights the risks of government and business relying heavily on the Redmond, Washington-based company’s software monoculture — and the fact that so many of its customers are linked via its global cloud network.

Microsoft Says It Hasn’t Been Able To Shake Russian State Hackers

“This has tremendous national security implications,” said Tom Kellermann of the cybersecurity firm Contrast Security. “The Russians can now leverage supply chain attacks against Microsoft’s customers.”

Tenable’s CEO, Amit Yoran, also published a statement expressing shock and dismay. He is among security pros who believe Microsoft is extremely secretive about its vulnerabilities and how it handles intrusions.

“We should all be furious that this keeps happening,” he continued. “These breaches aren’t isolated from each other and Microsoft’s shady security practices and misleading statements purposely obfuscate the whole truth.”

Microsoft said it has yet to establish if the incident will have a material impact on its profitability. It also stated that the intrusion’s persistence “reflects what has become a more broadly unprecedented global threat landscape, especially in terms of sophisticated nation-state attacks.”

The hackers, known as Cozy Bear, are the same ones responsible for the SolarWinds breach.

Microsoft Says It Hasn’t Been Able To Shake Russian State Hackers

When Microsoft first reported the intrusion, it stated that the SVR unit got into its corporate email system and accessed the accounts of certain senior executives and staff from its cybersecurity and legal departments. It did not specify how many accounts were compromised.

At the time, Microsoft stated that it could terminate the hackers’ access to the compromised accounts on or around January 13. But by then, they had certainly established a footing.

It said they gained access via compromising credentials on a “legacy” test account but did not elaborate.

Microsoft’s newest disclosure comes three months after a new Securities and Exchange Commission rule went into effect, requiring publicly traded corporations to disclose breaches that potentially harm their businesses.

SOURCE – (AP)

Nvidia’s market value has reached $2 trillion (£1.58 trillion), marking a new milestone in the chipmaker’s meteoric rise to the ranks of the world’s most valuable corporations.

Shares of the Silicon Valley corporation gained more than 4% in opening trading on Friday before falling slightly.

The gains built on the company’s impressive earnings announcement earlier this week.

AI Chip Firm Nvidia Valued At $2tn

The company is profiting from improvements in artificial intelligence (AI), which has boosted demand for its processors.

The company’s turnover doubled last year to more than $60 billion, and CEO Jensen Huang told investors this week that demand was “surging” worldwide.

The corporation, which became worth $1 trillion less than a year ago, is now the world’s fourth most valuable publicly traded company, trailing Microsoft, Apple, and Saudi Aramco.

AI Chip Firm Nvidia Valued At $2tn

After shares fell from their early Friday highs, the company’s market capitalization ended the day just under $2 trillion.

Nvidia was founded in 1993 and was originally recognized for producing computer processors that processed images, primarily for computer games.

Long before the AI revolution, it began adding capabilities to its chips that it claims to aid in machine learning, which has helped it acquire market dominance.

It is currently regarded as a vital company to monitor how quickly AI-powered technology spreads throughout the commercial world.

The firm’s stock price has more than tripled the previous year, from less than $240 per share to about $800 in midday trading on Friday.

On Thursday, the day after its earnings release, purchasers snapped up shares, boosting its value by $277 billion, the greatest one-day rise in Wall Street history.

He research has also contributed to a larger market rise, appearing to persuade investors that, as Derren Nathan of Hargreaves Lansdown put it, the AI boom is “living up to the hype”.

AI Chip Firm Nvidia Valued At $2tn

“It’s being used in automotive for design, in telecommunications for network planning, and in mainstream companies to figure out and get insights into data that they haven’t been able to get before,” Bob
O’Donnell, a technology analyst based in the United States, told the BBC earlier this week.

“This is now really starting to hit the kinds of companies across the board, not just specialized tech companies and that’s a real tipping point for the industry.”

SOURCE – (BBC)