Elon Musk says Tesla will hold a shareholder vote to incorporate in Texas after Delaware pay snub
Publishing timestamp: 2024-02-01 12:02:54
Summary
Elon Musk announced that Tesla will hold a shareholder vote on whether to transfer its state of incorporation from Delaware to Texas. Musk conducted an informal poll on social media, with over 80% of respondents voting in favor of the change. The decision to move the incorporation state would require approval from the Tesla board. The move comes after a judge in Delaware voided a $56 billion pay package granted to Musk in 2018. Musk expressed his dislike for Delaware and its fiduciary standards. Reincorporating in Texas could potentially allow Tesla to pay large sums to CEOs without the same liability. However, the decision to reincorporate could be challenged by shareholders as a breach of fiduciary duty.
Sentiment: NEUTRAL
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Keywords: business, executive compensation, transportation, technology, tesla inc, delaware, voting, electric vehicles, environment, business news, elon musk, autos, texas,