Elon Musk is asking Tesla shareholders to vote on relocating the company’s headquarters to Texas following a ruling from a Delaware court denying him a lucrative compensation plan.

The CEO of the electric car company announced on Thursday that Tesla will hold a vote among shareholders to decide if they should change their corporate registration to Texas, where their main headquarters is situated.

Musk announced on his social media platform, formerly known as Twitter, that Tesla will promptly initiate a shareholder vote to relocate its state of incorporation to Texas.

Earlier, Musk had surveyed X individuals on the identical matter and found that 87.1% of 1.1 million participants voted in favor. He declared, “The public’s opinion is clearly in favor of Texas!”

In 2021, Musk relocated Tesla’s headquarters from California to Austin, Texas. He had previously surveyed individuals about X in order to make informed decisions.

His announcement comes after a judge in Delaware, where the company is currently registered, ruled Tuesday that Musk is not entitled to a landmark compensation package potentially worth more than $55 billion that was awarded by Tesla’s board of directors.

Following the decision, Musk used social media to share his dissatisfaction.

“According to one of his posts, it is not advisable to establish your company in Delaware. He later suggested incorporating in Nevada or Texas if you want shareholders to make decisions.”

The ruling came five years after shareholders filed a lawsuit accusing Musk and Tesla directors of breaching their duties and arguing that the pay package was a product of sham negotiations with directors who were not independent of him.

The defense argued that the payment structure was fairly arranged by a committee responsible for compensation, made up of independent members and with high performance goals.

Source: wral.com