(Reuters) -Tesla will hold a shareholder vote to transfer its state of incorporation to Texas from Delaware, CEO Elon Musk said on Thursday, days after a judge invalidated his $56 billion pay package at the electric vehicle (EV) maker. On Tuesday, Delaware judge Kathaleen McCormick called the 2018 share-based pay package, the largest in corporate America, "an unfathomable sum" that was unfair to shareholders and found it was negotiated by directors who appeared beholden to Musk. "Never incorporate your company in the state of Delaware," Musk posted on social media X shortly after the ruling and also started a poll asking if Tesla should now incorporate in Texas.
Elon Musk has pledged to hold a shareholder vote on moving Tesla’s registration from Delaware to Texas after his $56bn (£44bn) pay package in 2018 was annulled by a state judge.
Tesla CEO Elon Musk said Thursday that company shareholders will vote on whether to move its registration to Texas after a Delaware judge tossed out a multibillion-dollar bonus package for Musk on Tuesday. Delaware Chancery Court Judge Kathaleen McCormick ruled Tuesday that Musk cannot keep a record-breaking compensation agreement worth up to $55.8 billion because…
Backers say the setup can help ordinary investors get cash for voting rights they are unlikely to use, but critics worry the practice is rife with the potential for abuse.