He’s now threatening to move – This judge has cut Musk’s billion-dollar salary

McCormick is the first woman to head the Delaware Court of Chancery, which handles major U.S. corporate cases. The lawyer is considered smart, she speaks unobtrusively and attentively, on the contrary to some people involved in the process.

For example, Tesla boss Elon Musk, who often appears boisterous and loud. Years ago, he negotiated a compensation package for his work as head of the electric car manufacturer, ultimately pocketing $56 billion (52 billion euros). McCormick declared the agreement null and void on Tuesday. That was an “incredible amount of money,” she said. Musk can appeal the ruling to the Delaware Supreme Court.

Not the first meeting
McCormick had dealt with the eccentric entrepreneur before. In July 2022, the judge heard the case against Musk when he sought to withdraw from his $44 billion bid to acquire the short-messaging service Twitter, now known as X. She emphasized that she wanted to protect the company and shareholders from damaging uncertainty. Tesla’s founder finally relented. “She met a lot of guys like Musk in private life,” says University of Delaware professor emeritus Charles Elson. “He won’t intimidate her.”

McCormick started her career at the Delaware chapter of the Legal Aid Society, which helps low-income people with legal problems. She eventually transitioned to the private sector and joined one of the state’s leading commercial law firms, Young Conaway Stargatt & Taylor. “There I learned a form of advocacy that suited my natural inclinations,” she said during a confirmation hearing in the Delaware Senate. That difficulties in business and in life are best addressed “not with ego, but with logic, reason and an open mind.”

Lawyers’ salaries are being reduced
Her statements span more than 100 pages, which she peppers with quotes from cookbook author Julia Child and insights from college football legend Knute Rockne, who coached at Notre Dame, where she earned her law degree. She defended her court against conservative critics from the ranks of former US President Donald Trump and stood up for small shareholders. She has even protected them from her own lawyers: in July she cut the fees of lawyers who had filed a dubious lawsuit against a company on behalf of shareholders by more than 90 percent. “If there isn’t much to gain from a case, plaintiffs’ lawyers shouldn’t be paid much,” she wrote.

Meanwhile, Musk wants to move his car manufacturer Tesla to Texas. After an online vote, he asked shareholders to approve a move to Texas. “Public opinion is unanimous in favor of Texas! “Tesla will immediately convene a shareholder meeting so that the company can fully relocate to Texas,” Musk wrote on his Platform X.

It would not be the first time that Musk took action after a dispute with the authorities. Tesla has already moved its operational headquarters from California to Austin, Texas in 2021. This was preceded by an exchange of blows with health authorities when it came to the reopening of the Fremont factory after the outbreak of the corona pandemic. Musk also protested regulations and taxes in California. The billionaire’s other companies, such as the aerospace company SpaceX and The Boring Company, which wants to dig tunnels for transportation systems, are also based in Texas.