The basic problem with Musk’s efforts to walk away from his deal to buy Twitter — beyond the transparent nonsense of his actual arguments — was that if he could walk away from this deal then no merger agreement would be binding; every buyer could change their mind and go to court and say “meh, contracts, they don’t matter.” That did not work out for him; the system held.
The basic problem with Musk’s efforts to walk away from these severance agreements — beyond the lack of actual arguments — is that if he can stiff these executives then no golden parachute is binding. The point of a golden parachute is that a CEO with a golden parachute will sell his company to a buyer whom he doesn’t like, if that’s what is best for shareholders. If the buyer can stiff the CEO on the parachute payments because they don’t like each other, then no buyer will ever pay severance, and no CEO will ever trust it.
‘Enforcement 40’ for 2020
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