Tesla CEO Elon Musk announced a shareholder vote on whether to transfer the company’s incorporation from Delaware to Texas after a judge voided his $56 billion pay package.
Tesla will hold a shareholder vote to transfer its state of incorporation to Texas, CEO Elon Musk announced after a Delaware judge voided his $56 billion pay package.
On Tuesday, Delaware judge Kathaleen McCormick sided with Tesla investors who had challenged the 2018 share-based pay package, ruling that the « unfathomable sum » was unfair to shareholders and negotiated by directors who appeared beholden to Musk.
« Never incorporate your company in the state of Delaware, » Musk posted on X, formerly Twitter, after the ruling came down.
In a follow-up post on X, Musk polled the platform’s users, asking, « Should Tesla change its state of incorporation to Texas, home of its physical headquarters? » The results of the poll were 87.1% « Yes » and 12.9% « No » after more than 1.1 million users voted.
