Elon Musk’s Neuralink company is moving to its legal home in Nevada

Elon Musk’s Neuralink company is moving to its legal home in Nevada

Elon Musk’s brain implant company Neuralink has moved its legal headquarters from Delaware to Nevada after the Delaware incident. Hit the judge Musk’s $55.8 billion pay package as Tesla CEO.

Neuralink, which is headquartered in Fremont, Calif., became a Nevada corporation on Thursday, according to state records. Delaware records also list the company’s legal domicile as Nevada.

The move comes after Musk wrote on X, previously Twitter, that shareholders of Austin-based Tesla will be asked to consider moving the company’s registration to Texas.

“Never incorporate your company in Delaware,” he wrote in a post after the court ruling. He later added: “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide things.”

FILE - In this Feb. 2, 2020, file photo, the Tesla logo is seen in Littleton, Colo. Tesla is recalling nearly all the vehicles it has sold in the U.S. because some of the warning lights on the dashboard are too small.  Documents published by US safety regulators on Friday, February 2, 2024 indicate that the recall will occur through an online software update.  (AP Photo/David Zalubowski, File)
FILE - Tesla CEO Elon Musk attends the first plenary session of the AI ​​Safety Summit at Bletchley Park, on Nov. 1, 2023 in Bletchley, England.  A Delaware judge this week invalidated Elon Musk's $55.8 billion pay package for Tesla, saying it was too large and that Musk had set terms with a complaints board.  (Photo by Leon Neal/Pool via AP, File)

Legal experts say most companies set up shop legally in Delaware because the laws there favor corporations. “Delaware has built its preferred state of incorporation by being friendly to corporate management, not shareholders,” said Eric Gordon, a professor of business and law at the University of Michigan.

On January 30, Delaware State Counsel Kathleen St. Jude McCormick invalidated the pay package Tesla created for Musk in 2018, ruling that the process was “flawed” and the price was “unfair.” In its ruling, it called the package “the largest potential compensation opportunity ever seen in the public markets by volume.”

McCormick’s ruling knocked Musk out of first place Forbes list of richest people.

Musk, a co-founder of private equity firm Neuralink, is listed as the company’s president in Nevada state documents. Messages were left Saturday seeking comment from Neuralink and Tesla.

McCormick determined that Tesla’s board lacked independence from Musk. His lawyers said the package had to be rich to give Musk an incentive not to leave, a reasoning that the judge shot down.

“Swept up by the ‘all upside’ rhetoric,” McCormick wrote, “or perhaps dazzled by Musk’s uncanny appeal, the board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk?” “And achieve its goals? “.

Musk’s fans argue that he shouldn’t be paid as much as other CEOs He’s not like other CEOs. He and Tesla are practically inseparable, so keeping him as CEO is key to the company’s growth. He built the company from idea to idea The most expensive car maker in the world, Last year it sold more electric cars than any other company. His star power garners free publicity, so the company spends little on advertising. It has forced the rest of the auto industry to accelerate its electric vehicle plans to counter Tesla’s explosive growth.

McCormick’s ruling came five years after shareholders filed a lawsuit accusing Musk and Tesla executives of violating their duties, and arguing that the pay package was the product of… Moot negotiations With directors who were not independent of him.

The defense countered that the pay plan was fairly negotiated by a compensation committee whose members were independent and had high performance achievements.

Musk wrote on X last month that The first human to receive a transplant From Neuralink. The billionaire did not provide additional details about the patient.

(tags for translation) Nevada

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