Originally published at: https://boingboing.net/2024/03/04/lawyers-who-blocked-elon-musks-51bn-pay-package-want-6bn-fee.html
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Priceless.
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I mean, didn’t he announce this move after this very judgment? He’s an idiot, though. There’s a reason so many corporations are incorporated in Delaware. They have the most business friendly corporate law in the country, including a court dedicate to corporate law full of a bunch of pro-capitalist judges. That Musk lost his case in that court says a lot. It means he would have lost that case in any court in the country. Moving Tesla to Texas isn’t going to free Musk up to do anything he wants, like he apparently thinks it will.
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No-one to root for here, just varying degrees of greed.
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Correct. The gist of his statement was that Delaware was mean to him and gave him cooties, and he didn’t want to go there anyway, and now he’ll take his ball and goes to play somewhere else.
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Yeah, the legal fee they’re requesting seems excessive, to say the least. I don’t see them getting that much. I’m not sure how they calculated that. In a tort case taken on contingency, it would be normal to take a percentage of the award, but this isn’t that kind of case. In this case, the $51 billion was returned to Tesla, who wasn’t the plaintiff. The plaintiff was a shareholder. Obviously, that one shareholder probably can’t pay enough to make this case worth taking, so they want their fee as some percentage of that $51B? Interestingly,
“This structure has the benefit of linking the award directly to the benefit created and avoids taking even one cent from the Tesla balance sheet to pay fees,” the lawyers wrote, adding that the fee would be tax-deductible to Tesla.
So it might not be as crazy as it seems at first glance. I doubt they’ll get that much, though.
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Kind of like if the cop who stopped a guy from stealing your car now thinks you owe him 10% of the value of the car as a reward.
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I think a better analogy would be someone who told the police who robbed a bank wanting a reward for doing that. The only thing unreasonable is how much they’re asking for, not that they’re asking for something.
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So now someone sues the law firms to stop the 6bn payment and it’s lawyers all the way down.
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That’s not how that works. First of all, that’s what they’re asking the court to award them in fees. The court is under no obligation to do that. If they do, however, under what legal theory would someone sue the attorneys? The court would have awarded them that. Tesla could appeal that, of course, and probably would, but no one would sue the lawyers. That kind of a lawsuit would get dismissed and maybe even earn its lawyers a sanction for filing a frivolous lawsuit.
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greedpigs, all of them
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I dunno, man. That seems fucking absurd. I mean Jesus Christ.
Yeah, I guess, you can look at it like they saved 51 billion, so they want 11.7% of that value saved? I mean, ~10% kinda sounds reasonable - but when you’re talking huge numbers like that - WTF?
The fee works out to an hourly rate of $288,888
Well, when you put it like that, it sounds even more ridiculous.
Also, they don’t have 6 billion lying around, do that? Would they pay in stock?
#richpeopleproblems
#thefirstthingwedois
I guess it comes down to how their contract was worded, but dang that’s sneaky if they actually got the board to sign off on “we get 12% of whatever we save you.”
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I suspect that that stops looking like a virtue when you fancy the notion that a publicly traded company you own under 20% of is actually your personal fiefdom by right of being a galaxy brain among NPCs.
Capitalism is all well and good when it comes to not paying taxes or shoving workers into dangerous machinery; but it’s not really good enough when you’re supposed to be the CEO-Emperor of Mars and some Chancery judge is acting like the rights of shareholders and the obligations of principals are actually a sincere position; not just something you invoke during layoffs.
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Pay them in Teslas.
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Pay them in Teslas Cybertrucks.
(Yes, also a Tesla.)
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“Qu’ils mangent des Cybertrucks.”
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