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Levine also explained that Delaware is such a popular place for companies because the law there is predictable and there is a (non-jury) fast track for company
by ralfd 3y ago
Levine also explained that Delaware is such a popular place for companies because the law there is predictable and there is a (non-jury) fast track for company disputes. Losing $50 billion in a court case is not predictable. But moving to a politically friendly (republican) state likely could be?
https://archive.is/LsUy9#selection-5105.0-5109.27 https://archive.is/LsUy9#selection-5105.0-5109.27
> Still, I mean, the bet here for Elon Musk is reasonable: If he moves Tesla to Texas, and then demands that Tesla’s board pay him $100 billion to keep a reasonable fraction of his time and attention on Tesla, and Tesla’s extremely accommodating board says “sure whatever you want,” and a majority of shareholders approve the pay package, and one disgruntled shareholder sues, and the case goes to Texas business court, and the complaining shareholder comes into court citing conflicts of interest and the board’s lack of independence and the Delaware cases on “entire fairness,” and Elon Musk comes into court saying “well that may all be true but what you are missing is that I am Elon Musk,” and Texas Governor Greg Abbott is in the first row of spectators with a big sign saying “TX <3 U ELON,” is the Texas business court, in its first real high-profile case, going to say “actually it’s illegal to pay Elon Musk that much”? It absolutely is not. That much is pretty predictable.
- viraptor 3y ago> Losing $50 billion in a court case is not predictable. Having your $50 billion payment case heard is not predictable. This whole situation is so unique, I'm not sure anything here generalises past Elon and Bezos.
- cma 3y ago> Losing $50 billion in a court case is not predictable. Shareholders, a different group of whom are supposed to be benefited by this new move, gained $50 billion in the court case. About 10% of the value of the company. Even Musk, in his role as shareholder, not employee, benefited with a massive win.
- ralfd 3y agoIn the Reuters report of the ruling: "Shares of Tesla dropped about 2% in premarket trade"