Deprived of his compensation plan, Elon Musk wants to transfer Tesla to Texas

After the cancellation of his enormous compensation plan by the courts of the State of Delaware, Elon Musk, the boss of Tesla, will request a vote of his shareholders to transfer the state of incorporation of the group from Delaware to Texas.

“The public vote is unequivocally in favor of Texas!” Tesla will immediately proceed to a shareholder vote to transfer the state of incorporation to Texas, which designates the place of registration of the company, the billionaire posted on his social network X (formerly Twitter), in a message published during the night from Wednesday to Thursday.

In a previous message on Wednesday, the richest man in the world asked his subscribers on X to vote on this transfer.

On Tuesday, the judge in a court in the state of Delaware, in the eastern United States, ruled in favor of a shareholder of the automobile manufacturer Tesla who requested the cancellation of a compensation plan granted in 2018 to boss Elon Musk.

In detail, this plan provided for giving Elon Musk Tesla shares based on the achievement of several objectives over ten years. It was estimated at $56 billion when it was adopted.

The judge considered that the shareholders had received “erroneous” and “misleading” information about the board of directors and the remuneration committee – several members of which had been close to the billionaire for 15 to 20 years – ahead of the general meeting during which this plan was approved.

According to the complainant, the South African entrepreneur dictated his terms to directors who, given their relationships with him or their personal interests, were not sufficiently independent to oppose them.

In reaction, the billionaire posted on the social network

Tesla’s headquarters has been based since late 2021 in the state of Texas, which is also home to one of the automaker’s mega-factories.

In electronic trading on the New York Stock Exchange on Thursday, Tesla shares rose 1.95% to $190.95, after losing more than 2.2% the day before.

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