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

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Tesla wants shareholders to reinstate $56 billion pay package for Musk rejected by Delaware judge
AP - VOR News Image

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.

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

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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.

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

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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.

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

WHDH – VOR News Image

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)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

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Nissan | CNN Image

Vicki Hill was awakened early on May 14 by explosions outside her Bethesda, Maryland, house. Later, she discovered that the 2015 Nissan Murano family SUV’s airbags were to blame for the loud bangs. It was on fire.

“I thought someone was trying to get into our house with a sledgehammer and I woke my husband up and I said something’s wrong,” she stated on CNN. “And he ran downstairs and shouted up, ‘Call 911, the car’s on fire!'”

The family gave CNN a video from their home’s doorbell camera, which shows smoke before the fire bursts and engulfs the automobile.

nissan

Nissan | Houston Press Image

Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

The cause of the fire in the Murano is unknown. Nissan is investigating the fire, and the National Highway Traffic Administration is also gathering information.

“The safety and security of our customers is our primary concern,” a Nissan spokeswoman stated in response to an email inquiry about the fire. “We have opened an investigation into this incident.”

Nissan recalled the Hills’ Murano in 2016 and 2019 to address a fault that may cause brake fluid to leak and create a fire even when the vehicle was parked. Owners were instructed to park their vehicles outside and away from buildings until the problem was resolved due to fire hazards.

A search on the NHTSA’s website revealed an outstanding unrepaired recall on the Hills’ Murano. According to the couple, a local fire investigator concluded that the unrepaired recall may have caused the fire. But the Hills recall having the service done and provided CNN with a snapshot of a receipt from a nearby Nissan dealership proving the repair was completed. CNN has not validated the receipt’s authenticity.

The Hills stated that because the recall work had been completed, they did not consider the potential of a fire.

Philip Hill had been working on the garage, so the couple’s two automobiles were parked in the driveway. Otherwise, the Murano would have been parked in the garage beside the home.

nissan

Nissan | DLJ Image

Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

“As you can see from the video, that vehicle is so close to the house,” Philip Hill explained to CNN. “Minutes later, the house could have gone up.”

According to reports, the garage door melted due to the fire. The Hills credit a neighbor’s dog for saving them and their three children. After being alerted by her dog, the neighbor called 911 before the Hills arrived

The powerful flames from the burning Nissan also destroyed the side of the family’s other vehicle, a 2012 Mercedes C-class, rendering it useless.

Initially, the Hills were frightened that they had been victims of vandalism. However, they stated that the video evidence from their Nest doorbell camera clearly showed the truck suddenly combusting.

nissan

Nissan | Houston

Their Nissan SUV Was Parked In The Driveway. Then It Caught Fire And Exploded

According to Hills, Nissan seized possession of the Murano on Wednesday to conduct a more thorough inspection.

Vehicle fires are not uncommon, as shocking as the Hills’ circumstance appears to be. According to the National Fire Protection Association, there will be approximately 188,500 automobile and truck fires in the United States in 2022, an average of more than 500 daily. According to the National Fire Protection Association, vehicle fires killed 610 civilians that year.

SOURCE – (CNN)

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U.S. Stock Markets Closed for Memorial Day on May 27

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U.S. Stock Markets Closed for Memorial Day on May 27

(CTN News) – The U.S. stock market will be closed on Monday, May 27, for Memorial Day.

The Nasdaq and New York Stock Exchange will be closed on Monday and reopened on Tuesday, May 28. According to the Securities Industry and Financial Markets Association, the U.S. bond market will close at 2 p.m. ET on Friday, May 24.

Memorial Day is one of numerous holidays in the United States commemorates and honors the military. Originally known as “Decoration Day,” it was established in the 1860s to honor those who died while serving in the military.

After Memorial Day, Wall Street will resume regular operations until mid-June. The next scheduled stock market closure is on Wednesday, June 19th, in honor of Juneteenth.

United States stock market 2024 holiday schedule

Markets will be closed for the following holidays:

  • Memorial Day: Monday, May 27
  • Juneteenth: Wednesday, June 19
  • Independence Day: Thursday, July 4 (markets also close at 1 p.m. ET on July 3)
  • Labor Day: Monday, Sept. 2
  • Thanksgiving: Thursday, Nov. 28 (markets also close at 1 p.m. ET on Nov. 29)
  • Christmas: Wednesday, Dec. 25

Memorial Day Traditions

Historically, Memorial Day has served as the unofficial start of summer. Thousands of students have the day off from school, and office workers enjoy a long weekend. As well as honoring fallen military heroes, it is a time for gatherings, barbecues, and outdoor activities.

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Boeing’s 1st Astronaut Flight Now Set For June After A Review Of Small Leak On New Capsule

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Boeing | AP News Image

CAPE CANAVERAL, Florida – Boeing is now aiming for its first human launch in early June, having spent the previous two weeks dealing with further issues with the space capsule.

Despite a propulsion system leak, officials from Boeing and NASA have assured that the Starliner spacecraft is equipped to safely transport two test pilots to the International Space Station. The minor helium leak, identified following the initial launch attempt on May 6, was promptly addressed and resolved, demonstrating the commitment to safety.

boeing

Boeing | Medium Image

Boeing’s 1st Astronaut Flight Now Set For June After A Review Of Small Leak On New Capsule

Engineers suspect a faulty rubber seal the size of a shirt button and claim that even if the leak grows, it can be fixed in flight. According to NASA’s commercial crew program manager, Steve Stich, all of the capsule’s other seals checked out, prompting officials to set the launch date for June 1.

This will be Starliner’s third test flight. Demos in 2019 and 2022 had no one on board. Boeing was forced to repeat the empty trip the first time due to software and other issues.

If not for the Atlas V rocket’s faulty valve, which halted the first countdown, Starliner would have launched from Cape Canaveral earlier this month, with the leak discovered in orbit, according to Stich. Officials said that flight controllers would have handled the leak, and the astronauts would have been safe. Helium is utilized to pressurize the fuel lines of the propulsion system, which moves the capsule in flight.

boeing

Boeing | Washington Times Image

Boeing’s 1st Astronaut Flight Now Set For June After A Review Of Small Leak On New Capsule

Engineers now know where the leak is, which, according to Boeing program manager Mark Nappi, will help them improve the system in the future.

“Remember that this is a test flight. “We are still learning,” Nappi told reporters.

According to Stich, the discovery of the Starliner leak revealed yet another issue — “a design vulnerability” in the propulsion system in the improbable scenario of a series of failures. He said that the crew had devised workaround measures to safely remove the capsule from orbit at the end of the trip if such issues emerged.

“We’re not going to fly until we’re sure we’re safe,” NASA Associate Administrator Jim Free stated.

boeing

Boeing | CTV News Image

Boeing’s first astronaut flight is now scheduled for June following a review of a minor leak in the new capsule.

Boeing’s Starliner capsule has already been years late carrying passengers to the International Space Station for NASA. SpaceX has launched crews since 2020. NASA wants both companies to provide taxi service to support each other.

SOURCE – (AP)

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