From Nasdaq:

Tesla CEO Elon Musk expressed his frustration by urging companies to relocate out of Delaware following the overturned compensation plan. Former SEC Chair Jay Clayton mentioned that Tesla’s board is likely to appeal the decision. Clayton also discussed the exceptional and disproportionate pay plan for Tesla’s shareholders, stating that they reaped significant benefits from the stock price rise.

Musk recently transferred the incorporation of his brain chip implant company, Neuralink, from Delaware to Nevada. This move comes after TripAdvisor faced legal challenges in Delaware when it sought shareholder approval to move its incorporation to Nevada. The company argued that relocating to Nevada would yield tax savings and reduce legal expenses.

The Delaware court ruled in favor of minority shareholders who sued TripAdvisor, maintaining that excluding the votes of the company chairman resulted in low support for the reincorporation. The company’s parent company, Liberty TripAdvisor Holdings, also faced a similar dilemma. Musk’s recent move is in line with his dissatisfaction with the Delaware judiciary, and he has encouraged other companies to move out of the state.



Read more: Tesla CEO Elon Musk Renews Call For Companies To Exit Delaware Before ‘They Lock The Doors, As They Just Did With TripAdvisor’