Headquarters were in the State of Delaware, which canceled the businessman's US$55 billion compensation package
Elon Musk announced this Thursday (15.Feb.2024) the change of the fiscal headquarters of SpaceX, his aerospace company, from Delaware to Texas. In early February, the billionaire had already announced that Tesla investors would vote for the same change.
In a post on X (formerly Twitter), Musk warned that companies that are still incorporated in the State of Delaware should “move to another state as soon as possible”.
On February 1, Musk said Tesla investors would vote on a possible move of the automaker's fiscal headquarters from Delaware to Texas. The statement was made after the Delaware Court annulled the businessman's remuneration package, 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 January 30th. 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 Musk's position as the richest man in the world at risk.
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.
#Elon #Musk #moves #SpaceX39s #fiscal #headquarters #Texas
