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States incorporate in Delaware for a reason. Isn’t Elon’s move just because his pay ask was rejected in Delaware? It wasn’t a move based on fundamentals. I don’

States incorporate in Delaware for a reason. Isn’t Elon’s move just because his pay ask was rejected in Delaware? It wasn’t a move based on fundamentals. I don’t see why other companies would do this.

dreamcompiler 3y ago
His Tesla pay ask was rejected. He wants to move Tesla too but that's going to be much tougher: Tesla is a public company and some of its shareholders will probably object and sue. SpaceX is a private company with many fewer investors who are presumed to be sophisticated, so they can pretty much do whatever they want with very little oversight. Moving Tesla will be much harder.
- DoesntMatter22 3y ago
  It's not really going to be much harder. They are going to put it to a vote at the annual meeting and if the vote passes then they will move it.
  - f0e4c2f7 3y ago
    For context, Elon's comp was also put to a vote in an annual meeting, passed, a minor shareholder (9 shares) filed a lawsuit and here we are. In the case of Tesla in Delaware at least, the court did not optimize for shareholders wishes. This is what has Elon wanting to move out of Delaware as much as the comp.
- cma 3y ago
  I wonder if Elon recused himself from the shareholder vote to move SpaceX since it was from personal stuff affecting him at another company?
- grecy 3y ago
  > His Tesla pay ask was rejected It wasn’t an ask. It was a payout agreed to by the board and shareholders if and only if he added a trillion dollars of value to the company. He did that, and now a court denied the deal. If my company signed a deal where I would get an astronomical bonus for pulling off the impossible then reneged when I did it I would be pretty pissed.
  - TheCoelacanth 3y ago
    That's why you don't negotiate your pay package "against" someone who was also your personal lawyer. If it wasn't for massive conflicts of interest in the process of him getting that deal, it never would have been overturned.

dreamcompiler 3y ago

His Tesla pay ask was rejected. He wants to move Tesla too but that's going to be much tougher: Tesla is a public company and some of its shareholders will probably object and sue. SpaceX is a private company with many fewer investors who are presumed to be sophisticated, so they can pretty much do whatever they want with very little oversight. Moving Tesla will be much harder.

DoesntMatter22 3y ago
It's not really going to be much harder. They are going to put it to a vote at the annual meeting and if the vote passes then they will move it.
- f0e4c2f7 3y ago
  For context, Elon's comp was also put to a vote in an annual meeting, passed, a minor shareholder (9 shares) filed a lawsuit and here we are. In the case of Tesla in Delaware at least, the court did not optimize for shareholders wishes. This is what has Elon wanting to move out of Delaware as much as the comp.
cma 3y ago
I wonder if Elon recused himself from the shareholder vote to move SpaceX since it was from personal stuff affecting him at another company?
grecy 3y ago
> His Tesla pay ask was rejected It wasn’t an ask. It was a payout agreed to by the board and shareholders if and only if he added a trillion dollars of value to the company. He did that, and now a court denied the deal. If my company signed a deal where I would get an astronomical bonus for pulling off the impossible then reneged when I did it I would be pretty pissed.
- TheCoelacanth 3y ago
  That's why you don't negotiate your pay package "against" someone who was also your personal lawyer. If it wasn't for massive conflicts of interest in the process of him getting that deal, it never would have been overturned.