Elon Musk criticized Delaware judge Kathaleen McCormick, who invalidated his unprecedented $56 billion compensation package, as a threat to America’s unfettered capitalist system. read about Elon Musk’s Explosive Response below.
Delaware, recognized as a corporate sanctuary, serves as the preferred locale for American businesses to establish themselves legally. The Chancery Court, overseen by McCormick, prides itself on being a legal custodian safeguarding the state’s business-friendly reputation. However, following McCormick’s refusal to authorize Tesla’s payment of $56 billion to Musk as agreed compensation, the technology magnate has directed his ire toward her via his social media platform, X.
In what appears to be a measured critique, Musk remarked, “She has inflicted more harm upon Delaware than any contemporary judge,” branding her primarily as an “activist and politician.” This incident isn’t Musk’s inaugural clash with McCormick, who thwarted his attempt in October 2022 to renounce his contractually bound agreement with Twitter to purchase the company for $44 billion.
Presently, Musk intends to garner shareholder backing to relocate Tesla’s legal domicile to Texas, its current headquarters.
Musk has persistently displayed his disdain for institutions that have sought to impede his aspirations.
His antagonism towards the Securities and Exchange Commission is well-documented, denouncing them as “shameless marionettes of Wall Street short seller predators.” Just last month, his legal team initiated a lawsuit against the National Labor Relations Board, challenging its very legitimacy. And federal agencies aren’t the only entities Musk holds in contempt.
During the fourth-quarter investor call last month, he jestingly bestowed the Institutional Shareholder Services (ISS)—which advised Tesla investors to oppose his “staggering” $56 billion compensation package—with the endearing moniker “ISS”.
Elon Musk’s disposition towards McCormick isn’t entirely unexpected, given his latitude to exert influence within his enterprises.
During his courtroom testimony, Musk conceded that his compensation arrangement at Tesla involved “negotiating against myself.”
However, the tycoon now appears to be embroiled in an economic parallel to Donald Trump’s “Stop the Steal” campaign, rallying his enthusiasts and backers to perceive McCormick as having deprived them of their voice by disregarding their endorsement of his compensation package.
He has amplified messages from influential figures within the Tesla community that reinterpret the situation as an assault on their rights as shareholders or assert that the court itself is rigged, instead of engaging with the substance or validity of McCormick’s assessment, which centered on the “deeply flawed” governance process.
Furthermore, Musk has endorsed individuals who falsely diminish her qualifications, portraying her as an art graduate from Harvard, a university whose reputation is now scrutinized due to alleged diversity biases (despite the fact that the judge actually studied philosophy, a relatively common major among legal professionals).
With a following of 171 million, any content he interacts with receives a significant boost from the algorithm, granting Musk a potent platform to influence public sentiment.
This narrative was initially featured on Fortune.com.