SpaceX, the rocket company led by CEO Elon Musk, has transferred its state of incorporation from Delaware to Texas, Musk announced Wednesday in a tweet on X, previously known as Twitter.
“SpaceX has moved its state of incorporation from Delaware to Texas! If your company is still incorporated in Delaware, I recommend moving to another state as soon as possible,” Musk stated in the tweet.
This move follows Musk’s earlier announcement this month regarding electric vehicle manufacturer Tesla. Musk disclosed plans to hold a shareholder vote to relocate Tesla’s state of incorporation to Texas, where its headquarters are located. This decision came after a Delaware judge invalidated his $56-billion pay package. Earlier this month, Elon Musk declared on X that “The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas,” following a poll where 87% of respondents voted “yes” for Tesla’s change of incorporation.
Additionally, Musk’s brain-chip implant company, Neuralink, shifted its location of incorporation from Delaware to Nevada last week.
SpaceX’s decision to move its incorporation to Texas comes shortly after a Delaware judge invalidated Musk’s $56 billion compensation package at Tesla, the electric vehicle manufacturer he founded and currently leads as CEO. Musk’s compensation package at Tesla, which was the largest ever awarded to an executive, significantly contributed to his status as one of the world’s wealthiest individuals.
The ruling resulted from a lawsuit initiated by a shareholder, contending that Musk’s significant associations with directors involved in negotiating the substantial package were not adequately disclosed before a stockholder vote to endorse the deal.
Furthermore, the judge determined that the performance objectives outlined in the compensation package were less stringent than what the company had indicated, and internal forecasts revealed that Musk was already progressing towards meeting significant portions of the package.
The plan provided Musk with the opportunity to acquire Tesla stock at significantly reduced prices. It comprised 12 tranches, each with increasing financial and operational objectives, although it mandated that Musk retain the obtained stock for a duration of five years.
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