Kevin O’Leary, chairman of OLeary Ventures, reacts to Elon Musk being forced to testify in the SEC investigation into his Twitter acquisition on The Big Money Show.
SpaceX CEO Elon Musk The company announced Wednesday night that it was changing its state of registration from Delaware to Texas after a Delaware court struck down the billionaire’s huge pay package from another of his ventures, Tesla.
“SpaceX has moved its state of incorporation from Delaware to Texas! If your company is still incorporated in Delaware, we recommend that you move to another state as soon as possible,” Musk wrote ( I wrote this in a post on my old Twitter.
SpaceX movement It’s been more than two weeks since a Delaware judge invalidated Musk’s $56 billion compensation package at Tesla, the electric car maker he founded and is CEO of. Mr. Musk’s compensation at Tesla was the highest ever given to an executive and went a long way in making him one of the world’s richest individuals.
Elon Musk’s $56 billion compensation package invalidated by judge
June 16, 2023, SpaceX, Twitter and electric car maker Tesla CEO Elon Musk attend the Vivatech Technology Startup and Innovation Trade Fair event at Porte de Versailles Exhibition Center in Paris attended. (Photo by JOEL SAGET/AFP via Getty Images/Getty Images)
The ruling stemmed from a lawsuit brought by shareholders who claimed Musk’s close relationship with the company’s directors who negotiated the hefty package was not properly disclosed before shareholders voted to approve the deal.
Judges also considered that performance goals compensation package It was easier to qualify than the company realized, with internal projections showing Musk was already on track to qualify for the bulk of the package.
The plan allowed Musk to acquire Tesla stock at a deep discount. It was divided into 12 tranches with progressively increasing financial and operational objectives, but required the acquired shares to be held for five years.
From Tesla to Texas?Elon Musk announces major shareholder vote
SpaceX founder Elon Musk is considering moving his operations out of Delaware following a court ruling that invalidated his pay package for Tesla. (Photo by Michael Gonzalez/Getty Images/Getty Images)
Musk heavily criticized the ruling, writing on X that entrepreneurs and founders should “never form a company in Delaware” and conducting a survey of the platform’s users on whether they should form a Tesla. posted. move to texas – This proposal was overwhelmingly supported by respondents.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| TSLA | Tesla Inc. | 188.71 | +4.69 | +2.55% |
“The people’s vote is unequivocally in favor of Texas!” Musk declared after the vote closed. “Tesla will immediately hold a shareholder vote to transfer its state of incorporation to Texas.”
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SpaceX’s status as a private company has allowed Musk and the space company’s leadership to speed up the process of changing its structure. Status of establishment.
Musk celebrated the occasion by posting a SpaceX logo emblazoned with a silhouette of the state of Texas.
FOX Business’ Chris Pandolfo contributed to this report.
