Elon Musk, founder of Neuralink Corp., is moving the tech company from Delaware to Nevada.
This decision follows the loss of a $55.8 billion Tesla pay package, rejected by a Delaware judge.
Musk informed Neuralink shareholders about the relocation finalized by the Nevada Secretary of State.
In a post on X, Musk advised against incorporating a company in Delaware.
He suggested incorporating in Nevada or Texas for more shareholder decision-making.
Musk plans for Tesla shareholders to vote on moving Tesla from Delaware to Texas.
Although headquartered in Austin, Tesla was originally incorporated in Delaware in 2003.
Delaware Chancellor Kathleen St. Jude McCormick voided a 2018 Tesla pay package, mainly involving Tesla shares instead of cash.
A shareholder in 2018 challenged Musk’s pay package, accusing him of dictating terms and misleading shareholders.
Musk was said to control Tesla’s board, which approved the pay package and included performance incentives.
Musk argued he owned less than a third of Tesla’s shares and wasn’t the controlling shareholder.
He highlighted Tesla’s share value increase from $53 billion to over $1 trillion since the pay package approval in 2018.
Chancellor McCormick ruled against Musk, stating the compensation plan creation process was flawed and involved Musk’s long-time business, legal, and personal relationships.
Following the ruling, Musk asked Tesla’s board to create a new compensation package, proposing a 25% stake in Tesla shares.
This would nearly double his current 13% stake, giving him more influence over corporate decisions.
Neuralink, a U.S.-based neurotechnology company, aims to develop a brain-computer interface.
The technology allows the human brain to communicate with tech devices using only thoughts.
Company officials believe this innovation can assist people with paralysis to lead more independent lives.
In January, Neuralink announced its first brain implant, initiating human trials.
In summary, Elon Musk’s decision to relocate Neuralink from Delaware to Nevada follows a setback with a Tesla pay package.
Musk is actively involved in reshaping strategies, seeking more shareholder involvement,
and addressing challenges posed by legal rulings. Meanwhile,
Neuralink continues its pioneering work in neurotechnology, aiming to revolutionize
communication between the human brain and technology.
ink Corp. is moving the tech company from Delaware to Nevada.
This decision follows the loss of a $55.8 billion Tesla pay package, rejected by a Delaware judge.
Musk informed Neuralink shareholders about the relocation finalized by the Nevada Secretary of State.
In a post on X, Musk advised against incorporating a company in Delaware.
He suggested incorporating in Nevada or Texas for more shareholder decision-making.
Musk plans for Tesla shareholders to vote on moving Tesla from Delaware to Texas.
Although headquartered in Austin, Tesla was originally incorporated in Delaware in 2003.
Delaware Chancellor’s Decision:
Delaware Chancellor Kathleen St. Jude McCormick voided a 2018 Tesla pay package, mainly involving Tesla shares instead of cash.
A shareholder in 2018 challenged Musk’s pay package, accusing him of dictating terms and misleading shareholders.
Musk was said to control Tesla’s board, which approved the pay package and included performance incentives.
Musk argued he owned less than a third of Tesla’s shares and wasn’t the controlling shareholder.
He highlighted Tesla’s share value increase from $53 billion to over $1 trillion since the pay package approval in 2018.
Chancellor McCormick ruled against Musk, stating the compensation plan creation process was flawed and
involved Musk’s long-time business, legal, and personal relationships.
Following the ruling, Musk asked Tesla’s board to create a new compensation package, proposing a 25% stake in Tesla shares.
This would nearly double his current 13% stake, giving him more influence over corporate decisions.
Neuralink, a U.S.-based neurotechnology company, aims to develop a brain-computer interface.
The technology allows the human brain to communicate with tech devices using only thoughts.
Company officials believe this innovation can assist people with paralysis to lead more independent lives.
In January, Neuralink announced its first brain implant, initiating human trials.
In summary, Elon Musk’s decision to relocate Neuralink from Delaware to Nevada follows a setback
with a Tesla pay package. Musk is actively involved in reshaping strategies, seeking more shareholder involvement,
and addressing challenges posed by legal rulings. Meanwhile, Neuralink continues its pioneering work in neurotechnology,
aiming to revolutionize communication between the human brain and technology.