The automaker's fiscal headquarters is in Delaware, the North American state that canceled the businessman's US$55 billion compensation package
Elon Musk said in the early hours of this Thursday (Feb 1, 2024) that Tesla investors will vote on a possible transfer of the automaker's fiscal headquarters from Delaware to Texas, both North American states. The statement was made after the Delaware Court canceled the remuneration package of the businessman, worth US$55.7 billion (R$221.4 billion).
Musk used his profile on X (formerly Twitter) to conduct a poll asking users whether Tesla should have its physical and tax headquarters in Texas. After the favorable result for change, he wrote: “The public vote is unequivocally in favor of Texas! Tesla will act immediately to hold a shareholder vote to move its fiscal headquarters to Texas”.
The remuneration package was canceled on Tuesday (Jan. 30). The judge in the case argued that the defendants, Musk and Tesla, were unable to justify the payment amount proposed by the company to the CEO in 2018. The decision could put the company at risk. Musk's position as the richest man in the world.
On X, Elon Musk reacted to the Court's decision. “Never incorporate your company in the State of Delaware”stated.
Owner of X, CEO of Tesla and founder of SpaceX, Elon Musk it ended the year 2023 as the richest person in the world, according to a ranking from the Bloomberg. The billionaire's fortune, which had fallen by US$138 billion in 2022, the year of Twitter purchaseclosed the year valued at US$232 billion (R$1.1 trillion).
The values were updated by Bloomberg throughout January. As of January 30, Musk's fortune is valued at US$205 billion (R$1 trillion), relating to the company's achievement of goals in 2018. An investor questioned the remuneration and claimed that the remuneration package was not transparent about the goals required of the billionaire.
UNDERSTAND
Tesla proposed a compensation package to the company's CEO in 2018. For each goal achieved – out of a total of 12 –, the billionaire gained 1% of the company's shares. Therefore, he currently owns 13% of the company's shares.
The compensation package led shareholders of the electric vehicle maker to question Elon Musk's power over Tesla's board of directors. According to other investors, the billionaire used his influence to dictate the contract approved in 2018.
Therefore, shareholder Richard Tornetta asked the court to terminate the payment package. The process, which can still be appealed, has been ongoing since then.
During a trial of the case in 2022, both defendants defended themselves by saying that the remuneration package ensured that the businessman helped the company in a critical period.
They also claimed that the payment of fees to the CEO allowed the shares to increase due to Musk's greater focus on the company.
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