You want your lawyer to be on your side.
The more passionate they are, the better.
If theyre so passionate they cant control their emotions, though, you might be in trouble.
Photo: Omar Marques / Stringer (Getty Images)
Thats exactly what happened to Elon Musk in a recent court case.
The waterworks came amidst the most devastating financial blow of Musks career.
On Tuesday, a Delaware court struck down his $56 billion compensation package at Tesla.
Screenshot:Threads
McCormick cited Marons weeping as a key example.
A companys General Counsel isnt the CEOs lawyer; theyre supposed to represent the companys interests.
It seems like that wasnt the situation at Tesla, however.
Screenshot:X
Maron didnt just cry at the deposition.
Maron and Tesla did not immediately respond to requests for comment.
It wasnt just Maron.
Musk had a 15-year relationship with Ira Ehrenpreis, who chaired the committee that determined the CEOs compensation.
All that could make for a conflict of interest.
According to the judge, thats exactly what happened.
Directors at a publicly traded company have a legal responsibility to protect the interests of the corporation.
But the negotiation for Musks compensation was a cooperative process, Maron told the court.
Judge McCormick said this unfathomable sum wasnt calibrated to match what Tesla got in return.
He sued Tesla, and after a lengthy court battle, the Delaware court system agreed.
Thats something Musk latched onto after the news about the case.
Never incorporate your company in the state of Delaware, Musk said in atweeton Tuesday.
Just over 87% of the 1.1 million people who voted said yes.
The public vote is unequivocally in favor of Texas!, Musktweeted.
Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas.
Correction 02/02/2024, 11:00 a.m.
Publicly traded companies have a legal responsibility to protect their own interests.
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