Miffed Musk relocates Neuralink from Delaware after Tesla payment package ruling
Elon Musk, founder of Neuralink and CEO of Tesla, informed the biotech company’s shareholders this week that he has moved the company’s headquarters from Delaware to Nevada. File photo by Bonnie Cash/UPI
February 10 (UPI) — Neuralink Corp. founder and investor Elon Musk is moving the technology company from Delaware to Nevada after losing a $55.8 billion Tesla pay package, which a Delaware judge recently invalidated.
Musk informed Neuralink shareholders of the change from Delaware to Nevada, which was finalized by the Nevada Secretary of State on Thursday, according to Bloomberg and the Wall Street Journal.
“Never incorporate your company in Delaware,” he posted on X.
“I recommend incorporating in Nevada or Texas if you prefer shareholders to decide things,” Musk said in another post.
The billionaire also said he intends for Tesla shareholders to vote on his proposal to move Tesla from Delaware to Texas. Tesla is headquartered in Austin, but was incorporated in Delaware in 2003.
Delaware State Chancellor Kathleen St. Jude McCormick in late January eliminated Tesla’s 2018 pay package that mostly included Tesla stock rather than cash payments.
A shareholder in 2018 filed a legal challenge to Musk’s $55.8 billion pay package, saying he dictated its terms and misled shareholders with incomplete disclosures in Tesla’s proxy statement.
The shareholder said Musk controlled Tesla’s board of directors, which approved the pay package, and dictated the terms of the package that included performance incentives.
Musk argued that he owned less than a third of Tesla shares and was not the controlling shareholder of Tesla. He said the value of Tesla shares had risen from $53 billion to more than $1 trillion since the board approved his salary package in 2018.
In ruling against and rescinding the pay package, McCormick said the process of creating the compensation plan was flawed and included people with whom Musk had long-standing business, legal and personal relationships.
Musk has asked Tesla’s board to create a new compensation package that would give him a 25% stake in Tesla, which would roughly double his current 13% stake in the electric car maker. Musk told the board that a 25% stake in Tesla would give him greater influence over the company’s decisions.
Neuralink is a US-based neurotechnology company that develops an interface system that enables the human brain to communicate with technical devices using only a person’s thoughts.
Company officials say the technology could help people with paralysis live more independent lives, and in January they announced the first brain implant to begin human trials.