Communist Judge “Karen” Rules Musk Makes Too Much Money

“Activist posing as a judge”

McCormick, appointed to the chancery by Democratic Delaware Governor John Carney, upheld her January decision invalidating Musk's pay package, valued at $56 billion at that time. The package had been voted on and approved by the company's shareholders.

After that ruling, another shareholder vote was taken in June, and 70 percent of the shareholders approved the package AGAIN. The package is now valued at $100 billion.

Despite the shareholder's voting to pay Musk, McCormick once again disallowed the agreed-upon pay package.

Musk was outraged by this self-appointed dictator's arrogance. He called the ruling “Totally crazy” and an example of “Absolute corruption.” He also accurately called McCormick an “Activist posing as a judge.”

McCormick’s original lame excuse for denying payment in January was that Musk improperly influenced the Tesla board of directors during negotiations and that the compensation was excessive. Ask yourself these questions. How would Musk improperly influence the majority of the board, and who the hell is McCormick to say that the compensation is excessive?

After that January ruling, Tesla followed through on its pledge to leave Delaware and reincorporate in Texas — though Musk’s lawyers assured the Delaware Chancery Court that it would still retain jurisdiction over the matter of the compensation package, a decision I’m sure they now regret.

The shareholders are the owners of this company. If they voted TWICE to pay Musk, McCormick has ABSOLUTELY NO RIGHT TO DISAGREE.

In her ruling this time, the petulant McCormick again refused to accept the fact that the company’s shareholders voted to pay Musk.

“The large and talented group of defense firms got creative with the ratification argument, but their unprecedented theories go against multiple strains of settled law.”

Dan Ives, an analyst at Wedbush, predicted that the company would succeed and that Musk would receive his payout.

Ives referred to McCormick’s ruling as “another Twilight Zone legal move,” stating, “We expect Tesla and Musk will win this case at the Supreme Court as the battle continues.”

Like all radicals, McCormick has tunnel vision. They always believe they are right, even when other people’s rights are violated and simple common sense is ignored. The shareholders are the owners of this company. If they voted TWICE to pay Musk, McCormick has ABSOLUTELY NO RIGHT TO DISAGREE.

Shareholders in the company also took to X to voice their anger with McCormick.

“A Delaware judge just overruled a supermajority of shareholders who own Tesla and who voted twice to pay @elonmusk what he’s worth.”

“This ruling, if not overturned, means that judges and plaintiffs’ lawyers run Delaware companies rather than their rightful owners — the shareholders.”

“I recommend all future companies to incorporate outside of Delaware”

Other business leaders also took umbrage with McCormick’s ridiculous decision.

“Judge McCormick is an activist judge at its worst,” Cathie Wood, founder and CEO of ARK Invest and a major Tesla shareholder, wrote on X.

“No judge has the right to determine CEO compensation. Shareholders voted twice, overwhelmingly each time, to ratify @elonmusk’s 2018 performance-based pay package. She will lose this fight in the Supreme Court.”

Paul Graham, co-founder of the venture capital firm Y Combinator, wrote on X: “It used to be automatic for startups to incorporate in Delaware. That will stop being the case if activist judges start overruling shareholders.”

In a follow-up post, Graham mentioned that a public company's CEO advised him that “all startups should reincorporate in Nevada. That’s apparently the best alternative, and for startups that are still private, it’s trivially easy.”

Shaun Maguire, a former Google executive now a partner at Sequoia Capital, wrote: “I recommend all future companies to incorporate outside of Delaware.”

McCormick, with her self-righteous stupidity, will now not only embarrass herself but also sabotage the entire state for future company startups. This has a Musk vendetta written all over it, and it has nothing to do with the rule of law.

This is typical of Democratic liberals who believe that the rule of law doesn’t apply to them and is another example of how they are definitely unfit to dispense it.