Feb. 10 (UPI) — Neuralink Corp. founder and investor Elon Musk is relocating the tech company from Delaware to Nevada after losing a $55.8 billion Tesla pay package that a Delaware judge recently nixed.
Musk notified Neuralink shareholders of the change from Delaware to Nevada, which the Nevada Secretary of State finalized Thursday, according to Bloomberg and the Wall Street Journal.
“Never incorporate your company in the state of Delaware,” he posted on X.
“I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters,” Musk said in another post.
The billionaire also said he intends to have Tesla shareholders vote on his proposal to move Tesla to Texas from Delaware. Tesla is headquartered in Austin but was incorporated in Delaware in 2003.
Delaware Chancellor Kathleen St. Jude McCormick last month voided a 2018 Tesla pay package that mostly included Tesla shares in lieu of 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 a Tesla proxy statement.
The shareholder said Musk controlled the Tesla corporation’s board of directors, who 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’s shares and wasn’t Tesla’s controlling shareholder. He said Tesla share values rose from $53 billion to more than $1 trillion since the board approved his pay package in 2018.
In ruling against and rescinding the payment package, McCormick said the process to create the compensation plan was flawed and involved people with whom Musk has longtime business, legal and personal relationships.
Musk asked Tesla’s board of directors to create a new compensation package that would award him 25% of Tesla shares, which would nearly double his current 13% stake in the electric vehicle maker. The 25% stake in Tesla would give him more influence over corporate decisions, Musk told the board.
Neuralink is a U.S.-based neurotechnology company working to develop an interface system that would enable the human brain to communicate with tech devices using only a person’s thoughts.
Company officials say the technology could help people afflicted with paralysis to live more independent lives and in January announced its first brain implant to start its human trials.