Tesla Pay Package Controversy
In the wake of a judge invalidating a $55.8 billion pay package for Elon Musk from Tesla, the billionaire has swiftly taken action by relocating the legal home of SpaceX from Delaware to Texas.
SpaceX Moves Headquarters
A certificate of conversion has been filed to reincorporate Space Exploration Technologies Corp. in Texas, a decision that Musk announced on social media platform X. This move follows a similar shift made by Musk’s brain implant company, Neuralink, from Delaware to Nevada.
Texas Appeal
While Delaware is known for its favorable corporate laws, experts warn that the change in SpaceX’s incorporation might have unforeseen consequences. Musk’s decision comes on the heels of a judge’s ruling that Tesla’s board lacked independence from him, leading to the invalidation of his staggering pay package.
Legal Battle Fallout
The legal battle surrounding Musk’s compensation package has not only impacted his ranking on the Forbes list of wealthiest individuals but has also raised questions about corporate governance practices within Tesla. Musk’s lawyers argued that the hefty pay plan was necessary to retain his services, a claim that was dismissed by the judge.
Future of Tesla
Musk hinted at the possibility of relocating Tesla’s corporate registration to Texas, suggesting that a formal proposal may soon be presented to shareholders of the Austin-based company.
