researcher on technology policy at Yale Law School and New America. “People are far more trusting overall in how government entities handle their personal information and far more suspicious about the corporate sector.”

Legal analysts said any disciplinary actions resulting from the Shanghai police database breach were unlikely to be publicized. There are few mechanisms in place to hold Chinese government agencies responsible for their own data leaks. For many citizens, that lack of recourse has contributed to a sense of resignation.

Occasionally, though, they notch small victories, as Xu Peilin did when she took on her neighborhood committee last year. She had returned to her apartment building in Beijing one day to find that the compound wanted residents to submit to a facial recognition scanner to enter.

“It was insane,” said Ms. Xu, 37, a project manager at a start-up company. She said it reminded her of one of her favorite television shows, the British science fiction series “Black Mirror.”

Ms. Xu badgered her neighborhood committee by telephone and text message until it relented. For now, Ms. Xu said, she can still enter her compound using her key card, though she believed it was only a matter of time until the facial recognition devices became mandatory again.

“All I can do for now,” she said, “is continue to resist on a small scale.”

Zixu Wang contributed reporting.

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The Elon Musk-Twitter Saga Now Moves to the Courts

Now that Elon Musk has signaled his intent to walk away from his $44 billion offer to buy Twitter, the fate of the influential social media network will be determined by what may be an epic court battle, involving months of expensive litigation and high-stakes negotiations by elite lawyers on both sides.

The question is whether Mr. Musk will be legally compelled to stick with his agreed-upon acquisition or be allowed to back out, possibly by paying a 10-figure penalty.

Most legal experts say Twitter has the upper hand, in part because Mr. Musk attached few strings to his agreement to buy the company, and the company is determined to force the deal through.

inauthentic accounts. He also said that Mr. Musk did not believe the metrics that Twitter has publicly disclosed about how many of its users were fake.

Twitter’s board responded by saying it intended to consummate the acquisition and would sue Mr. Musk in a Delaware chancery court to force him to do so.

At the heart of the dispute are the terms of the merger agreement that Mr. Musk reached with Twitter in April. His contract with Twitter allows him to break off his deal by paying a $1 billion fee, but only under specific circumstances such as losing debt financing. The agreement also requires Twitter to provide data that Mr. Musk may require to complete the transaction.

Mr. Musk has demanded that Twitter give a detailed accounting of the spam on its platform. Throughout June, lawyers for Mr. Musk and Twitter have wrangled over how much data to share to satisfy Mr. Musk’s inquiries.

as they face advertising pressure, global economic upheaval and rising inflation. Twitter’s stock has fallen about 30 percent since the deal was announced, and trades well under the Mr. Musk’s offering price of $54.20 a share.

Legal experts said Mr. Musk’s dispute over spam could be a ploy to force Twitter back to the bargaining table in hopes of securing a lower price.

During the deal-making, no other potential buyer emerged as a white knight alternative to Mr. Musk, making his offer the best that Twitter is likely to get.

Twitter’s trump card is a “specific performance clause” that gives the company the right to sue Mr. Musk and force him to complete or pay for the deal, so long as the debt financing he has corralled remains intact. Forced acquisitions have happened before: In 2001, Tyson Foods tried to back out of an acquisition of the meatpacker IBP, pointing to IBP’s financial troubles and accounting irregularities. A Delaware court vice chancellor ruled that Tyson had to complete the acquisition,

jittery employees.

attempted to break up its $16 billion deal to acquire Tiffany & Company, ultimately securing a discount of about $420 million.

“This stuff is a bargaining move in an economic transaction,” said Charles Elson, a recently retired professor of corporate governance at the University of Delaware. “It’s all about money.”

A lower price would benefit Mr. Musk and his financial backers, especially as Twitter faces financial headwinds. But Twitter has made clear it wants to force Mr. Musk to stick to his $44 billion offer.

The most damaging outcome for Twitter would be for the deal to collapse. Mr. Musk would need to show that Twitter materially and intentionally breached the terms of its contract, a high bar that acquirers have rarely met. Mr. Musk has claimed that Twitter is withholding information necessary for him to close the deal. He has also argued that Twitter misreported its spam figures, and the misleading statistics concealed a serious problem with Twitter’s business.

A buyer has only once successfully argued in a Delaware court that a material change in the target company’s business gives it the ability to cleanly exit the deal. That occurred in 2017 in the $3.7 billion acquisition of the pharmaceutical company Akorn by the health care company Fresenius Kabi. After Fresenius signed the agreement, Akorn’s earnings fell and it faced allegations by a whistle-blower of skirting regulatory requirements.

Even if Twitter shows that it did not violate the merger agreement, a chancellor in the Delaware court may still allow Mr. Musk to pay damages and walk away, as in the case of Apollo Global Management’s deal combining the chemical companies Huntsman and Hexion in 2008. (The lawsuits concluded in a broken deal and a $1 billion settlement.)

habit of flouting legal confines.

revealed in May that it was examining Mr. Musk’s purchases of Twitter stock and whether he properly disclosed his stake and his intentions for the social media company. In 2018, the regulator secured a $40 million settlement from Mr. Musk and Tesla over charges that his tweet falsely claiming he had secured funding to take Tesla private amounted to securities fraud.

“At the end of the day, a merger agreement is just a piece of paper. And a piece of paper can give you a lawsuit if your buyer gets cold feet,” said Ronald Barusch, a retired mergers and acquisitions lawyer who worked for Skadden Arps before it represented Mr. Musk. “A lawsuit doesn’t give you a deal. It generally gives you a protracted headache. And a damaged company.”

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How Elon Musk and Tesla Helped Make C.E.O Pay Even Richer

While those compensation totals are taken from the company’s financial filings, they are often estimates driven by the companies’ attempts to value the stock their chief executives might receive. As a result, the executives may earn less than those totals, especially if the bear market persists and their companies’ stock prices remain depressed, but they could also take home far higher amounts should the stocks recover.

Many of the highest-ranking executives in the survey received pay packages that were far larger than those of the heads of far bigger companies with much larger profits. For example, Tim Cook, chief executive of Apple, received his first equity award since 2011 last year and had total compensation of $99 million, putting him just 13th in the survey.

Despite the growth in pay, shareholders, apparently believing that it is being tied to performance, have voted in favor of most packages. Only 3 percent of “say on pay” votes got less than 50 percent support from shareholders in the year through June 3, according to an analysis of 1,444 public companies by Willis Towers Watson, a consulting firm that advises companies on executive pay programs and corporate governance matters.

For several years, public companies have had to compare their chief executive’s compensation with that of a typical employee, the result of a regulation passed by Congress that aimed to help investors assess the level of executive pay. Last year, chief executives earned 339 times more than the median pay of employees at their companies, up from 311 times in 2020, according to Equilar. The median employee wage rose 10 percent last year, to $92,349 from $83,808.

Last year’s executive pay jumped in part because corporate boards, which decide chief executive compensation, wanted to reward top officers for navigating their companies through the pandemic.

In addition, the stock market rallied in 2021, and the value of stock grants, which typically constitute the largest share of chief executive compensation, was also higher. When stock prices are rising, boards tend to say executives are doing a good job — and pay them more.

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On Russia, Europe Weighs Competing Goals: Peace and Punishment

BRUSSELS — Losing ground to Russia’s brutal advance in the east, Ukraine on Monday demanded an arsenal of sophisticated Western weapons many times greater than what has been promised, or even discussed, underscoring the rising pressure on Western leaders to reconsider their approach to the war.

The tactics that served the Ukrainians well early in the war have not been nearly as effective as the fighting has shifted to the open ground of the Donbas region in the east, where Russians are relying on their immense advantage in long-range artillery. Russian forces are poised to take the blasted city of Sievierodonetsk, the easternmost Ukrainian outpost, and are closing in on the neighboring city of Lysychansk.

With the leaders of France, Germany and Italy planning their first visit to Ukraine’s capital, Kyiv, since the war began, they and other Western leaders have to decide whether to double down on arming Ukraine or press harder for negotiations with Moscow to end the war.

running out of ammunition for their Soviet-era artillery, and Ukrainian officials contend that Russian artillery in the east is out-firing their own, 10 to 1.

Mykhailo Podolyak, the Zelensky adviser, said Ukraine needs 300 mobile multiple rocket-launch systems, 1,000 howitzers, 500 tanks, 2,000 armored vehicles and 1,000 drones to achieve parity with Russia in the Donbas region where fighting is concentrated — numbers many times beyond anything that has been publicly discussed in the West. The United States has promised four of the mobile rocket launchers and Britain a few more; Washington has sent a little more than 100 howitzers, and other nations a few dozen more.

faster than Ukrainians can be trained to use them — but Mr. Podolyak, Mr. Zelensky and others clearly mean to keep up the pressure on the West, complaining daily that the current arms flow is woefully inadequate.

mposed tough economic sanctions on Russia, supplied significant financial and military aid to Ukraine, and insisted publicly that it is up to Ukraine’s own, democratically elected leaders to decide how and when to negotiate with Russia.

But they also worry that a long war will bring in NATO countries and even cause President Vladimir V. Putin of Russia to escalate what has been a brutal but conventional campaign. President Emmanuel Macron of France, in particular, has twice said it was important not to “humiliate Russia.”

European officials also worry about the damage being done to their own economies by inflation and high energy prices, and about the likely domestic political backlash. And many in Europe are eager to find a way, even if it’s a temporary cease-fire, to resume Ukrainian grain exports as global food prices soar and parts of the world face a threat of famine.

Such talk raises hackles in Kyiv and in the capitals of Central and Eastern Europe where Russia is most feared, and officials questioned how committed their friends to the west are to beating back Mr. Putin’s aggression. Leaders of several countries that were once part of the Soviet bloc believe this war is about more than Ukraine, and that the Kremlin’s ambitions to re-establish that sphere of influence and overthrow the European security order must be met with defeat, not a cease-fire.

matériel, but fear it could soon be surrounded, trapping a large number of Ukrainian troops.

Mr. Michta wrote for Politico.

“For the first time in the modern era,” he wrote, “it would force Moscow to come to terms with what it takes, economically and politically, to become a ‘normal’ nation-state.”

Reporting was contributed by Andrew E. Kramer and Valerie Hopkins from Kyiv, and Thomas Gibbons-Neff from Lysychansk, Ukraine.

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U.S. bars Cuba, Venezuela from Americas summit; Mexican leader sits out

WASHINGTON/MEXICO CITY, June 6 (Reuters) – The White House on Monday excluded Cuba, Venezuela and Nicaragua from the U.S.-hosted Summit of the Americas this week, prompting Mexico’s president to make good on a threat to skip the event because all countries in the Western Hemisphere were not invited.

The boycott by Mexican President Andres Manuel Lopez Obrador and some other leaders could diminish the relevance of the summit in Los Angeles, where the United States aims to address regional migration and economic challenges. President Joe Biden, a Democrat, hopes to repair Latin America relations damaged under his Republican predecessor, Donald Trump, reassert U.S. influence and counter China’s inroads.

The decision to cut out Cuba, Venezuela and Nicaragua followed weeks of intense deliberations and was due to concerns about human rights and a lack of democracy in the three nations, a senior U.S. official said.

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U.S. State Department spokesperson Ned Price said the Biden administration “understands” Mexico’s position, but “one of the key elements of this summit is democratic governance, and these countries are not exemplars, to put it mildly.”

Biden aides have been mindful of pressure from Republicans and some fellow Democrats against appearing soft on America’s three main leftist antagonists in Latin America. Miami’s large Cuban-American community, which favored Trump’s harsh policies toward Cuba and Venezuela, is seen as an important voting bloc in Florida in the November elections that will decide control of the U.S. Congress, which is now in the hands of the Democrats.

Lopez Obrador told reporters that his foreign minister, Marcelo Ebrard, would attend the summit in his place. The Mexican president said he would meet with Biden in Washington next month, which the White House confirmed. read more

“There can’t be a Summit of the Americas if not all countries of the American continent are taking part,” Lopez Obrador said.

Lopez Obrador’s absence from the gathering, which Biden is due to open on Wednesday, raises questions about summit discussions focused on curbing migration at the U.S. southern border, a priority for Biden, and could be a diplomatic embarrassment for the United States.

A caravan of several thousand migrants, many from Venezuela, set off from southern Mexico early Monday aiming to reach the United States. read more

But a senior administration official insisted Lopez Obrador’s no-show would not hinder Biden’s rollout of a regional migration initiative. The White House expects at least 23 heads of state and government, which the official said would be in line with past summits.

U.S. Senator Robert Menendez, a Democrat and chairman of the powerful Senate Foreign Relations Committee, criticized the Mexican president, saying his “decision to stand with dictators and despots” would hurt U.S.-Mexico relations.

CUBA CRITICAL

Brazilian President Jair Bolsonaro, a right-wing populist and Trump admirer who leads Latin America’s most populous country, will attend after initially flirting with staying away. read more

The exclusion of Venezuela and Nicaragua had been flagged in recent weeks. President Miguel Diaz-Canel of Communist-ruled Cuba said last month he would not go even if invited, accusing the United States of “brutal pressure” to make the summit non-inclusive.

On Monday, Cuba called the decision “discriminatory and unacceptable” and said the United States underestimated support in the region for the island nation.

The United States invited some Cuban civil society activists to attend, but several said on social media that Cuban state security had blocked them from travel to Los Angeles. read more

Having ruled out Venezuelan President Nicolas Maduro, the Biden administration expects representatives for opposition leader Juan Guaido will attend, Price said. He declined to say whether their participation would be in person or virtually.

The senior administration official, asked whether Biden might have a call with Guaido during the summit, said there was a good chance of an “engagement,” but declined to elaborate.

Washington recognizes Guaido as Venezuela’s legitimate president, having condemned Maduro’s 2018 re-election as a sham. But some countries in the region have stuck with Maduro.

Also barred from the summit is Nicaraguan President Daniel Ortega, a former Marxist guerrilla who won a fourth consecutive term in November after jailing rivals.

Most leaders have signaled they will attend, but the pushback by leftist-led governments suggests many in Latin America are no longer willing to follow Washington’s lead as in past times.

Faced with low expectations for summit achievements, U.S. officials began previewing Biden’s coming initiatives. Those include an “Americas partnership” for pandemic recovery, which would entail investments and supply-chain strengthening, reform of the Inter-American Development Bank, and a $300 million commitment for regional food security.

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Reporting By Matt Spetalnick in Washington and Dave Graham in Mexico City; Additional reporting by Humeyra Pamuk, Eric Beech and Patricia Zengerle in Washington, Kylie Madry and Lizbeth Diaz in Mexico City, Jose Torres in Tapachula and Dave Sherwood in Havana; Writing by Ted Hesson; Editing by Grant McCool, Alistair Bell and Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

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Somalia Elects New President, but Terrorists Hold True Power

MOGADISHU, Somalia — In a fortified tent guarded by peacekeeping forces, hundreds of lawmakers elected a new president in Somalia on Sunday, capping a violent election season that threatened to push the Horn of Africa nation toward a breakdown.

The selection of Hassan Sheikh Mohamud, a former president, in Mogadishu ended a bitter election period marred by corruption, a president’s attempt to cling to power and heavy fighting in the streets. Mr. Mohamud defeated three dozen candidates after three rounds of voting, including President Mohamed Abdullahi Mohamed, who drew condemnation after extending his term last year.

The vote, which had been delayed for nearly two years, came amid soaring inflation and a deadly drought that has left almost 40 percent of the country hungry. The streets in Mogadishu, the capital, were closed on Sunday, and the police announced a curfew through Monday morning.

a former U.S. citizen and bureaucrat, who led the country for five years. Mr. Mohamed has been accused of cracking down on the opposition and on journalists, fomenting a rift with neighboring Kenya and undercutting the power-sharing model that buttressed the country’s federal system.

The Shabab, who are linked to Al Qaeda, have exploited the political instability and the bitter divisions between security forces to expand and gain strength, experts said. After more than 16 years, the group now has wide powers: extorting taxes, judging court cases, forcing minors into its ranks and carrying out suicide bombings.

signed a law extending his tenure by two years, fighting broke out in the capital’s streets, forcing him to change course.

Observers said the election of lawmakers last year was rife with corruption.

February and March on Somali officials and others accused of undermining the parliamentary elections, which eventually concluded in late April.

Because of the indirect nature of the presidential vote, candidates did not campaign in the streets. Instead, they met with lawmakers and clan elders in luxury hotels and compounds guarded by soldiers and blast walls. Some aspirants put up election billboards, promising good governance, justice and peace.

But few in this seaside city believe politicians will make good on their pledges.

“Everyone wears a suit, carries a briefcase and promises to be as sweet as honey,” said Jamila Adan, a political science student at City University. “But we don’t believe them.”

government’s infighting and paralysis, many Somalis are asking whether a new administration will make a difference.

Some Somalis have turned to the Shabab for services that would ideally be delivered by a functioning state. Many in Mogadishu regularly travel to areas dozens of miles north of the city to get their cases heard at Shabab-operated mobile courts.

One of them is Ali Ahmed, a businessman from a minority tribe whose family home in Mogadishu was occupied for years by members of a powerful tribe. Mr. Ahmed said the Shabab-run court ruled that the occupiers should vacate his house — and they did.

“It’s sad, but no one goes to the government to get justice,” he said. “Even government judges will secretly advise you to go to Al Shabab.”

according to the World Food Program, with nearly 760,000 people displaced.

according to the United Nations. Aid organizations are not able to reach them there, crops are failing and the Shabab demand taxes on livestock, according to interviews with officials and displaced people.

To find food and water, families travel hundreds of miles, sometimes on foot, to cities and towns like Mogadishu and Doolow in the southern Gedo region. Some parents said they buried their children on the way, while others left weak children behind to save others who were hardier.

Dealing with the Shabab will be among the first challenges facing Somalia’s next government, said Afyare Abdi Elmi, executive director of the Heritage Institute for Policy Studies in Mogadishu.

But the new leader, he said, needs also to deliver a new Constitution, reform the economy, deal with climate change, open dialogue with the breakaway region of Somaliland and unite a polarized nation.

“Governance in Somalia became too confrontational over the past few years,” Mr. Elmi said. “It was like pulling teeth. People are now ready for a new dawn.”

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