A judge in the US state of Delaware recently ruled against Tesla CEO Elon Musk’s $56 billion salary package, siding with a shareholder who argued the entrepreneur was overpaid. Following this, the billionaire remarked that one should “never incorporate your company in the state of Delaware”. “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” he wrote in another article. In keeping with his unusual decision-making style, Mr Musk conducted a poll on X to determine whether Tesla should change its corporate status. He raised the question, “Should Tesla change its state of incorporation to Texas, home of its physical headquarters?” Since being shared seven hours ago, 88% of 6,56,805 people have voted.
The verdict threatens to reduce Mr Musk’s wealth to third place in the world after he spent the previous two years as the richest person
The post has also amassed a variety of reactions on the microblogging platform. “Yes. Good choice,” said a user. Another added, “Yes, and we will protect the border while we are there!” Meanwhile, Chancery Court Chief Judge Kathaleen St. J. McCormick agreed on Tuesday with a Tesla investor who claimed the 2018 pay package failed to clearly show what Mr Musk was expected to do to earn the money and that the board was riddled with conflicts of interest when it approved the deal to keep him as CEO. The verdict threatens to reduce Mr Musk’s wealth to third place in the world after he spent the previous two years as the richest person. The judge’s judgment comes just days after Musk told analysts that he wants to increase his ownership in the electric carmaker to prevent being removed, preserve control of the company, and grow into artificial intelligence, according to Bloomberg.
