News
US judge rejects Musk’s $55.8bn Tesla pay deal
A US judge upheld her decision to reject Elon Musk’s massive $55.8 billion compensation package at Tesla, denying an attempt to restore the pay deal through a shareholder vote on Monday.
In a court filing, Chancellor Kathaleen McCormick of Delaware’s Court of Chancery ruled that Tesla’s attempt to ratify Musk’s compensation package through a June shareholder vote could not override her January decision striking down the package as excessive and unfair to shareholders.
McCormick found multiple flaws in Tesla’s ratification attempt, including “material misstatements” in documents provided to shareholders about the effect of their vote.
“The motion to revise is denied,” McCormick wrote.
“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,” she added.
In a statement on Musk’s X social media platform, Tesla said it would appeal the verdict.
“Shareholders should control company votes, not judges,” said Musk, in a separate post.
The court also awarded $345 million in attorney fees, significantly less than the $5.6 billion requested by the lawyers of plaintiff Richard Tornetta, a Tesla shareholder.
While acknowledging their calculation method was technically sound under Delaware law, which bases fees on the percentage of benefit achieved, McCormick ruled that such a large award would constitute an excessive windfall.
Shareholders originally backed the Musk compensation plan in March 2018, specifically designed to reward the 53-year-old founder for Tesla’s significant growth.
But in a lawsuit, Tornetta accused the defendants of failing in their duties when they authorized the pay plan and alleged that Musk dictated his terms to directors, who were not sufficiently independent from their star CEO.
He also accused Musk of “unjustified enrichment” and asked for the annulment of a pay program that helped make the entrepreneur the richest man in the world.
During a trial in 2022, Musk countered that investors in Tesla were some of the “most sophisticated in the world” and able to keep tabs on his management.
He said Tesla had been the laughingstock of the auto industry, and it was only the massive success of the company’s Model 3 that turned things around.
Musk insisted that he played no role in coming up with the package nor discussed his deal with the board members, some of them close friends, who ultimately signed off on it.
The Delaware Court of Chancery has been a pillar of US capitalism for more than a century and is the jurisdiction where roughly two-thirds of American Fortune 500 companies are registered.
Musk on Monday reposted other users’ X posts calling for companies to leave Delaware.
AFP
By Kayode Sanni-Arewa
The Nigerian National Petroleum Company (NNPC) Limited has announced a reduction in the pump price of Premium Motor Spirit (PMS), popularly known as petrol, at its retail outlets in the Federal Capital Territory (FCT), Abuja.
According to a report by The Cable, the petrol price at the NNPC station in Wuse Zone 3, Abuja, was cut from ₦935 per litre to ₦910, signaling a slight relief for consumers in the nation’s capital.
However, the new pricing has not yet extended to Lagos, where petrol prices at NNPC retail outlets remain unchanged. This discrepancy has sparked renewed concerns over regional price variations in Nigeria’s downstream oil market.
The latest adjustment comes in the wake of an intensifying price contest between NNPC and the privately-owned Dangote Refinery. Just days earlier, on May 12, the Dangote Refinery lowered its ex-depot petrol price to ₦825 per litre, a strategic move aimed at capturing a larger share of the domestic fuel market.
The price reduction appears to be an outcome of recent high-level discussions between NNPC’s Group Chief Executive Officer (GCEO), Bayo Ojulari, and Dangote Refinery’s founder, Aliko Dangote. The meeting, held on May 9, reportedly sought to realign the relationship between the two entities and promote collaboration rather than rivalry.
Speaking after the meeting, Dangote stated, “There is no competition between us; we are not here to compete with NNPC Ltd. NNPC is part and parcel of our business, and we are also part of NNPC. This is an era of cooperation between the two organisations.”
Ojulari echoed this position during a press briefing on May 12, attributing the petrol price reduction to the recent procurement of fuel at lower international prices. He explained that the earlier surge in pump prices was due to existing stock purchased by marketers at higher rates.
“This downward price adjustment reflects our effort to respond to changing supply conditions and deliver better value to Nigerians,” Ojulari said, while also noting that more adjustments may occur as the market stabilizes.
Industry observers view the ongoing price adjustments as an early indicator of growing competition in Nigeria’s petroleum sector, especially with the Dangote Refinery ramping up its operations. Analysts believe that sustained collaboration between both players could enhance supply efficiency and potentially ease the burden of fuel costs for consumers nationwide.
News
BUNKERING: Army, Tantita Security Arrest Truck Laden with Illegally Extracted Crude Oil in Delta
A joint team comprising officers of the 181 Battalion, Nigerian Army, Oleh, and personnel from Tantita Security Services Nigeria Ltd. has arrested a vacuum truck involved in illegal crude oil extraction at Well 3, Olomoro, in Isoko South Local Government Area of Delta State.
According to reports, the truck, which previously belonged to Engr. Daniel Omoyibo, also known as Damotech, was gifted to the driver, Mr. Matthew Ojomikre, who is currently being detained at the Forward Operating Base (FOB), 181 Battalion, Oleh.
Upon interrogation, the driver confessed that his company had been contracted by Heritage Energy Operational Services Ltd. to evacuate sludge from Well 3, Olomoro. However, he was unable to provide any formal approvals or documentation authorizing the activity, as was previously the norm.
Until recently, Heritage Energy Operational Services Ltd. had consistently provided crude and condensate trucking permits to officers of the Nigerian Army and Tantita Security Services Nigeria Ltd. for proper monitoring from the loading point to the discharge location.
Officers of Tantita Security Services, in collaboration with a team from Heritage and the Nigerian Army, have collected samples from the vacuum truck for laboratory testing and analysis.
The preliminary confessional statement from the driver indicates that he illegally collected crude oil from Well 3 under the pretense of evacuating sludge from the wellheads.
Authorities have reported that the same truck has previously been involved in unauthorized crude oil evacuations within the Isoko axis.
The driver, the truck, and its contents remain in custody at the 181 Battalion Base in Oleh for further interrogation and possible prosecution.
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