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.
