International
Musk to testify at trial over his $50 bn Tesla compensation
| By AFP | Juliette Michel |
Tesla tycoon Elon Musk will take the stand on Wednesday as part of a trial over his $50 billion pay package as CEO of the electric car giant.
Musk will testify in the same Delaware court where he faced a lawsuit by Twitter to make sure he went through with his buyout of the social platform.
The $44 billion purchase of Twitter has put Musk under a deluge of scrutiny after he conducted massive layoffs, scared advertisers and opened the platform to fake accounts.
The unrelated Tesla case is based on a complaint by shareholder Richard Tornetta, who accused Musk and the company’s board of directors of failing in their duties when they authorized the pay plan.
Tornetta alleges that Musk dictated his terms to directors who were not sufficiently independent from their star CEO to object to a package worth around $51 billion at recent share prices.
The Tesla shareholder accuses Musk of “unjustified enrichment” and asked for the annulment of a pay program that helped make the entrepreneur the richest man in the world.
According to a legal filing, Musk earned the equivalent of $52.4 billion in Tesla stock options over four and a half years after virtually all of the company’s targets were met.
When the plan was adopted it was valued at a total of $56 billion.
The non-jury trial began Monday with testimony from Ira Ehrenpreis, head of the compensation committee on Tesla’s board of directors, who said the targets set were “extraordinarily ambitious and difficult”.
Ehrenpreis argued that the board wanted to spur Musk to focus on Tesla at a time when the company was still struggling to gain traction.
‘Highly unusual’
The trial will run through Friday and is being presided over by Judge Kathaleen McCormick, the same judge who was to preside over the Twitter case.
There is no deadline for her decision which could take months.
It’s “highly unusual” for this kind of case to be brought to trial, Jill Fisch, Law professor at the University of Pennsylvania, told AFP.
“There aren’t all that many successful challenges to executive compensation (as) the courts have typically treated this as a business decision,” she added.
But the court found in this case that Musk’s ownership of about 22 percent of Tesla and his role as CEO “could have an undue impact” on the board and other shareholders, she noted.
Musk canceled an in-person appearance on Sunday at an event on the sidelines of the G20 in Bali to be in court.
Asked why he had not traveled to the tropical Indonesian island, the new Twitter boss joked that his “workload has recently increased quite a lot” after his takeover of the social media giant.
International
Floods in Central Vietnam leave 28 dead, thousands displaced
The death toll from heavy rains and flooding in central Vietnam has risen to 28, with six people reported missing and 43 injured, local newspaper VnExpress reported Friday night.
More than 22,100 homes remain flooded, primarily in the cities of Hue and Da Nang. Floods and landslides have destroyed or swept away 91 houses and damaged another 181, the report added.
Around 245,000 households are still without electricity, particularly in Da Nang, where over 225,000 homes are affected.
Additionally, 80 stretches of national highways are blocked or disrupted due to landslides. Authorities expect the flooding to continue for another day or two in the region.
International
FBI foils ISIS-Inspired attack in Michigan, arrests five teens
Kash Patel did not provide further details, but police sources told CBS News that the potential attack was “inspired” by the Islamic State (ISIS).
“This morning, the FBI thwarted a potential terrorist attack and arrested several individuals in Michigan who were allegedly planning a violent attack during the Halloween weekend,” Patel wrote on X.
“Thanks to swift action and close coordination with our local partners, a possible terrorist act was prevented before it could be carried out,” he added.
CBS reported that five people between the ages of 16 and 20 were arrested on Friday. At least one of them was reportedly acquainted with a former member of the Michigan National Guard, who was arrested in May for plotting an ISIS-inspired attack on a U.S. military facility in the Detroit suburbs.
International
U.S. warns China over Taiwan during high-level defense talks in Kuala Lumpur
U.S. Secretary of Defense Pete Hegseth expressed concerns over China’s growing military activity near Taiwan during a meeting on Friday with Chinese Defense Minister Dong Jun in Kuala Lumpur.
“It was a constructive and positive meeting,” Hegseth wrote on X. “I emphasized the importance of maintaining a balance of power in the Indo-Pacific and raised U.S. concerns about China’s actions around Taiwan,” the self-governed island that Beijing claims and does not rule out invading.
The meeting took place on the sidelines of the ASEAN Defense Ministers Meeting-Plus, one day after U.S. President Donald Trump met Chinese President Xi Jinping in Busan, South Korea. According to Trump, Taiwan was not discussed during their talks.
“The United States does not seek conflict and will continue to firmly defend its interests, ensuring it maintains the capability to do so in the region,” Hegseth added in his message.
Friday’s encounter followed a September 9 video call between Hegseth and Dong. Their previously planned meeting at the Shangri-La Dialogue in Singapore was canceled due to Dong’s absence from the event.
Trump’s sit-down with Xi — their first since 2019 — resulted in some trade agreements but avoided addressing the issue of Taiwan, a long-standing source of tension between the world’s two largest powers.
Trump has taken a more ambiguous stance on Taiwan’s future compared with former President Joe Biden, who repeatedly stated that Washington would support Taipei if China launched an invasion. The Republican president has also criticized Taiwan for “stealing” the U.S. semiconductor industry.
Floods in Central Vietnam leave 28 dead, thousands displaced
FBI foils ISIS-Inspired attack in Michigan, arrests five teens
U.S. warns China over Taiwan during high-level defense talks in Kuala Lumpur
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