Elon Musk On Thursday, a day after a judge in the US state of Delaware invalidated the ruling, Tesla announced that it would vote to change its incorporated status. $56 billion compensation package.
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“Tesla intends to immediately conduct a shareholder vote to move its corporate status to Texas,” he announced on his social media platform X (formerly Twitter).
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In a ruling Wednesday, Delaware Chancery Court Judge Kathleen McCormick sided with shareholders who say the Tesla CEO was overcompensated, ruling out a massive $55.8 billion deal with Musk in 2018. Approved the cancellation of the remuneration contract.
“Never incorporate your company in Delaware,” Musk, the world's richest man, wrote shortly after the ruling.
He then launched a poll asking X whether Tesla should change its legal status to Texas, where its physical headquarters are located.
“The people's vote is clearly in favor of Texas!” Said Entrepreneur born in South Africa and naturalized in the United States.
Of the more than 1.1 million votes cast in the poll, 87.1% supported changing Tesla's legal form.
McCormick said in his ruling that Musk's 2018 compensation plan represents “by an order of magnitude the largest potential compensation opportunity ever observed in the public market.”
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“The process that led to the approval of Mr. Musk's compensation plan was deeply flawed,” he said, adding that the parties will now “consult” and “all issues, including fees, that need to be resolved in order to bring this matter forward.” It is necessary to submit a joint letter identifying the Draw conclusions at the exam level. ”
Musk was sued along with Tesla and other members of the company's board of directors.
The case went to trial in 2022.
Written by Garyn Lambly ©Agence France-Presse
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