Musk wants Tesla investors to vote on shifting the automaker’s registration to Texas
Elon Musk wants Tesla investors to decide to move the company’s listing to Texas after a Delaware court decided he should not receive a multibillion-dollar pay package.
Tesla will ask shareholders to vote on whether to shift the company’s registration to Texas, where it is headquartered, the electric car company’s CEO said early Thursday.
“Tesla will immediately move to hold a shareholder vote to move its state of incorporation to Texas,” Musk wrote on his social media platform X, formerly known as Twitter.
Musk had previously polled X users on the same question, with 87.1% of 1.1 million respondents voting yes. “The public vote is unequivocally in favor of Texas!” he wrote.
Musk, who previously polled people about X before making decisions, will move Tesla’s headquarters to Austin, Texas, from California in 2021.
His announcement comes after a judge in Delaware, where the company is currently registered, ruled on Tuesday that Musk is not entitled to a historic compensation package potentially worth more than $55 billion awarded by Tesla’s board of directors.
Following the ruling, Musk took to social media to express his displeasure.
“Never incorporate your company in Delaware,” he wrote in one post. He later added: “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide things.”
The ruling came five years after shareholders filed a lawsuit accusing directors of Musk and Tesla of violating their duties, and arguing that the pay package was the product of sham negotiations with directors who were not independent of him.
The defense countered that the pay plan was fairly negotiated by a compensation committee whose members were independent and had high performance achievements.
This article originally appeared on www.independent.co.uk