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In Key State of Delaware, 'Corporate Insider Power Grab' Quietly Underway
"Delaware's Senate just chose billionaire insiders—like Elon Musk and Mark Zuckerberg—over pension funds, retirement savers, and other investors by passing S.B. 21."
Mar 18, 2025
The push to pass Senate Bill 21 in Delaware, the "corporate capital of the world," is garnering criticism from some anti-monopoly, economic, and legal experts this week.
"Delaware's Senate just chose billionaire insiders—like Elon Musk and Mark Zuckerberg—over pension funds, retirement savers, and other investors by passing S.B. 21," Laurel Kilgour, research manager at the American Economic Liberties Project (AELP), said in a Monday statement about state senators' overwhelming support for the "corporate insider power grab" last week.
Delaware lawmakers are swiftly working to overhaul state law after a judge ruled against Musk's $56 billion 2018 compensation package for Tesla. The CEO—who is the world's richest person and now a key leader in President Donald Trump's administration—then moved the incorporation for his other companies elsewhere, and urged other businesses to follow suit. Some are doing so and others are reportedly considering it, including Zuckerberg's Meta, the parent company of Facebook and Instagram.
As Business Insiderreported last month, citing Delaware's Division of Corporations, nearly 2.2 million entities are registered in the tiny state, including two-thirds of all Fortune 500 companies.
"This bill only serves to make it easier for corporate boards to rubber-stamp excessive executive pay and self-serving deals that drain returns from pensioners and retirement accounts," warned Kilgour. "Coming on the heels of another panicked giveaway to the corporate defense bar just last year, this is a reckless move that will undermine investor confidence and further erode Delaware's credibility as a fair corporate forum. The Delaware House must step in and stop this dangerous bill before it's too late."
Specifically, as AELP laid out, "S.B. 21 jeopardizes the ability of investors to protect themselves from harmful board decisions that slash returns to investors' hard-earned retirement savings, such as awarding exorbitant executive pay packages that far exceed any rational benchmark, or overpaying to acquire companies in which controlling shareholders have financial stakes."
"The bill makes it easier for corporate boards to insulate directors and controlling shareholders from litigation over conflicts of interest and self-dealing by corporate insiders, narrows who qualifies as a controlling shareholder, imposes a new presumption that board members are independent no matter who they are appointed by, and makes it more difficult for shareholders to discover conflicts by restricting their access to internal corporate records," the nonprofit detailed.
Joseph R. Mason, a Ph.D. economist and fellow at the University of Pennsylvania's Wharton School of Business, also sounded the alarm on S.B. 21 with a Monday opinion piece in the Delaware Business Times.
"I recently conducted an economic impact study on the likely effects of Senate Bill 21 (S.B. 21) on the Delaware economy. Based on my findings, a reasonable estimate of the annual economic activity lost due to S.B. 21's passage is $117 million-$235 million in decreased economic activity and 450-900 lost jobs, statewide," he wrote. "My analysis very likely understates the impact to Delaware, as it only estimates lost economic activity generated by law firms located in the state."
Mason's op-ed followed a Delaware Onlinepiece from attorney Greg Varallo, who is head of Bernstein Litowitz Berger & Grossmann's Delaware office and represented Richard Tornetta, the Tesla shareholder behind the Musk case in the state.
"On March 5, this paper published an op-ed by William Chandler and Lawrence Hamermesh," Varallo pointed out last week, referring to a former chancellor on the Delaware Court of Chancery who is now a partner at Wilson Sonsini Goodrich & Rosati, and a professor emeritus at the Widener University Delaware School of Law.
"In the piece, my old friends extolled the virtues of S.B. 21, going so far as to argue that the bill restored balance to the corporate law playing field. Nonsense. S.B. 21 is a license to steal for corporate controllers like Elon Musk," argued the lawyer, who spent decades leading a defense-side firm.
According to Varallo: "The idea that S.B. 21 will restore 'balance' between the interests of regular investors and billionaires who control companies is demonstrably false S.B. 21 creates 'safe harbors' for controllers to steal from their controlled public companies and from the stockholders who invested in those companies without having to answer for doing so. The bill overturns decades of thoughtfully crafted common law and puts Delaware in direct competition with Nevada for the state which gives controllers the clearest and easiest to follow road map to commit grand larceny."
"This isn't someone else's problem. If your retirement includes index funds, as most do, you are a stockholder in controlled companies because no index fund operates without owning controlled companies," he added. "As a citizen who believes that the independence of our judiciary is at the very core of our form of government, I can't sit still while the proponents of this legislation continue to attack the public servants who serve on the Court of Chancery, the nation's leading business court."
Meanwhile, as the Delaware Business Timesnoted Monday, S.B. 21 is backed by "two of the most powerful Delaware business organizations, the Delaware State Chamber of Commerce and the Delaware Business Roundtable," and groups that testified in support of it include ChristianaCare, the Central Delaware Chamber of Commerce, and the Home Builders Association of Delaware.
Despite expert warnings, Delaware lawmakers are continuing their efforts to send S.B. 21 to the desk of Democratic Gov. Matt Meyer, who last week called on them to pass the legislation "as quickly as possible." According to the Delaware General Assembly website, the state House introduced an amendment to the bill on Tuesday.
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Report Exposes Musk Operatives Who Have Infiltrated Social Security Agency
"This team appears to be among the largest DOGE units deployed to any government agency."
Mar 14, 2025
Despite his pledge of "maximum transparency," Elon Musk has gone to great lengths to obscure the names and activities of staffers working for his Department of Government Efficiency—even claiming at one point that it is illegal to publicly identify members of the advisory commission.
That didn't stop Wired from publishing a story on Thursday that names 10 DOGE operatives who have infiltrated the Social Security Administration, which is facing deep staffing cuts that advocates warn could impact the delivery of benefits.
The staffers, according to Wired, are Akash Bobba, Scott Coulter, Marko Elez, Luke Farritor, Antonio Gracias, Gautier Cole Killian, Jon Koval, Nikhil Rajpal, Payton Rehling, and Ethan Shaotran. The list "includes a number of young engineers whose presence at the SSA has not been reported."
"This team appears to be among the largest DOGE units deployed to any government agency," the outlet noted. "Many of them have worked or interned at Musk companies such as Tesla and SpaceX, and the majority of them have also appeared at other government agencies in recent weeks, as part of DOGE's incursion into the government."
Three of the DOGE staffers—Gracias, Koval, and Rehling—don't seem to have any prior government experience," Wired observed, "but Gracias does have a long history with Musk—he worked at Tesla for 14 years as a company director and helped Musk take the company public."
The details came amid widespread alarm and legal action over DOGE staffers' access to highly sensitive information at SSA, which administers benefits to tens of millions of Americans.
Bloombergreported Thursday that "at least seven DOGE staffers have been granted access to a database known as the Master File of Social Security Number Holders and SSN Applications, also known as Numident."
"They currently have read-only access as they try to connect the dots between Social Security numbers and possible fraudulent benefits," Bloomberg added.
Both Musk and President Donald Trump have falsely claimed in recent weeks that tens of millions of dead people are receiving Social Security benefits.
SCOOP: Elon Musk has installed 10 of his DOGE operatives at the Social Security Administration. We got their names w/ @makenakelly.bsky.social www.wired.com/story/doge-o...
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— David Gilbert (@davidgilbert.bsky.social) March 13, 2025 at 8:03 PM
Wired reported that "one of the tasks the DOGE cohort will be assigned is how people identify themselves to access their benefit payments."
"Experts with decades of experience at the agency are now worried that DOGE operatives working across multiple agencies increases the risk of SSA data being shared outside of the agency, or that their inexperience will lead to them breaking systems entirely," the outlet added.
Leland Dudek, whom Trump installed as acting SSA commissioner last month, has acknowledged to senior agency staff that Musk's lieutenants are now effectively in the driver's seat at the department, making key decisions despite their lack of knowledge of SSA systems.
"Are we going to break something?" Dudek asked during a recent closed-door meeting with SSA staffers and advocates. "I don't know."
The new reporting on DOGE staffers' presence at SSA comes as Democratic lawmakers are demanding an investigation into Musk's activities at the agency amid mounting concerns that he wants to privatize Social Security.
In a letter to the Republican chair of the Senate Finance Committee earlier this week, Sen. Ron Wyden (D-Ore.) and other Democratic senators warned that DOGE staffers' "unfettered access" to SSA data raises "a profound risk of causing irreparable harm to the agency's systems and Americans' financial security."
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International Push for Consumer Boycott of US Grows
"A lot of people feel betrayed by our closest ally," said one marketer in Canada, where President Donald Trump has imposed 25% tariffs.
Mar 12, 2025
With declining consumer interest in Tesla vehicles sending CEO and Trump administration ally Elon Musk into an apparent panic over the electric automaker's plummeting stock—spurring an impromptu car show on the White House lawn Tuesday with President Donald Trump scolding Americans for not buying Musk's products—recent reports from across Europe and Canada suggest the two right-wing leaders are pushing global consumers to reject not just Tesla, but a wide array of American goods.
As The Guardianreported Wednesday, numbers released this week by Statistics Canada showed waning enthusiasm for Canadians to visit their southern neighbor, with 23% fewer Canadians taking road trips into the U.S.—the most popular mode of cross-border travel—this year so far compared to February 2024.
With Trump initiating a trade war with Canada—falsely claiming the country is a major source of fentanyl flowing into the U.S.—by imposing 25% tariffs on all Canadian imports and threatening to take over the country as the "cherished Fifty First State," consumers have been downloading apps like "Maple Scan" and "Is This Canadian?" to avoid purchasing U.S.-made products.
"A lot of people feel betrayed by our closest ally," Emma Cochran, an Ottawa-based marketer, toldNBC News on Wednesday.
Cochrane partnered with a colleague to make hats and shirts emblazoned with the phrase, "Canada is not for sale," one of which was worn by Ontario Premier Doug Ford last week.
"This felt like a way that we could participate and just kind of say, 'We're going to stand up for Canada,'" she told NBC.
Canadian officials announced retaliatory tariffs on $21 billion in goods on Wednesday after Trump raised global steel and aluminum tariffs to 25%—backing off of an earlier threat of a 50% levy.
As some Canadian provinces began pulling U.S. liquor brands from government-run stores and replacing bottles with "Buy Canadian Instead" signs, the CEO of the Kentucky-based Brown-Forman, which makes Jack Daniel's, called the boycott "frustrating."
"That's worse than a tariff because it's literally taking your sales away," Whiting said on an earnings call last week.
Nick Talley, a physician-scientist in New South Wales, Australia, said Trump "presumably... thought everyone would just bow down" after he imposed tariffs and raised prices for consumers around the world.
Danish grocery company Salling Group has also taken action to oppose Trump's threat to take control of Greenland, an autonomous territory within the Danish kingdom.
The company is still carrying U.S.-made products but is marking European-made goods with a black star to identify them for shoppers.
A Verian/SVT survey in Sweden on Tuesday found that "the U.S.'s actions in world politics... have led many Swedes to hesitate in the face of American products."
Twenty-nine percent of Swedish residents said they had refrained from buying U.S. goods in the last month amid Trump's trade war, his temporary suspension of aid to Ukraine after publicly berating Ukrainian President Volodymyr Zelenskyy at the White House earlier this month, and Musk's meddling in European politics by expressing support for British right-wing extremist Tommy Robinson and German political party Alternative for Germany, which has embraced Nazi slogans and came in second in last month's elections.
Norwegian fuel company Haltbakk urged "all Norwegians and Europeans" to join in boycotting the U.S. after the confrontation between Trump and Zelenskyy, which the firm called "the biggest shit show ever presented 'live on TV' by the current American president and his vice president."
The company has provided fuel to U.S. ships in Norwegian ports but said it would no longer do so as the international community expressed shock over Trump's treatment of Zelenskyy and Ukrainian victims of Russia's invasion.
Meanwhile, European consumers have continued to make their views on Musk—a "special government employee" of Trump's who has spearheaded the slashing of federal jobs and spending and threatened to cut $700 billion from Social Security, Medicare, and Medicaid—by refusing to buy Tesla cars.
February sales were down 76% in Germany, 53% in Portugal, 55% in Italy, and 48% in Norway and Denmark—contributing the company's plummeting share price and loss of $800 billion in market cap.
Trump offered to buy a Tesla before staging a showing of five of the cars at the White House Tuesday, claiming American consumers are "illegally" boycotting the company, but as Channel 4 in the U.K. reported, "the company will have to find a lot more buyers to make up for a sharp decline in sales across Europe" as both boycotts and protests at Tesla dealerships spread.
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