All articles tagged with #corporate relocation
Texas has enacted new laws that make it easier for companies to relocate from Delaware by shifting power from shareholders to management, reducing shareholder protections, and potentially weakening investor influence, as part of a broader competition among states to attract corporate charters.
Tesla plans to ask shareholders to reinstate a $56 billion compensation package for CEO Elon Musk that was rejected by a Delaware judge, and to move the company's corporate home from Delaware to Texas. The rejected package was potentially worth about $55.8 billion over 10 years starting in 2018. The company also faces challenges such as eroding stock value, declining electric vehicle sales, and Musk's demand to own 25% of Tesla shares for pursuing artificial intelligence and robotics at the company.
Tesla plans to ask shareholders to reinstate a $56 billion compensation package for CEO Elon Musk that was rejected by a Delaware judge, and to move the company's corporate home from Delaware to Texas. The rejected package, awarded by Tesla's board of directors, was ruled invalid by a judge earlier this year. The shareholder vote, scheduled for June 13, is advisory, but the board will consider concerns raised. Despite record deliveries in 2023, Tesla's shares have declined, and the company faces challenges such as increased competition and softening demand for electric vehicles.
Elon Musk is planning to move SpaceX's corporate headquarters from California to Texas, marking another significant shift away from Delaware. This move comes as Musk continues to consolidate his business interests in Texas, where he has already relocated Tesla's headquarters and is building a new Tesla Gigafactory. The relocation reflects Musk's growing dissatisfaction with California's regulatory environment and high taxes, as well as his desire to centralize his companies' operations in one location.