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Delaware court rules against Elon Musk pay deal

Adam McCulloch
1 1 minute read

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Our Friday look at the more bizarre goings on in the wider HR world turns its attention to the US and the latest events surrounding that beacon of ego-free leadership Elon Musk …

Delaware doesn’t seem a particularly offensive place. But it has deeply offended the world’s richest man. A judge in the second smallest US state – where Musk’s Tesla electric car firm is incorporated – has ruled the Tesla, SpaceX and X boss’s $56bn salary agreed in 2018 is bang out of order.

The ruling has drained the charge from Musk’s battery, leaving him spluttering mean things about Delaware into X (formerly Twitter, now owned by Musk). Once fully charged he has vowed to make for Texas.

The case was brought by a extremely minor shareholder in Tesla five years ago, who had accused the company’s chief executive of improperly dictating negotiations over his compensation package. It was also claimed that the board acted without independence.

“Never incorporate your company in the state of Delaware,” Musk vowed on X in response to the ruling. “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters”.

The ruling can be appealed to the Delaware supreme court.

He has subsequently held a poll on X to ask the public whether Tesla should change the company’s state of incorporation from Delaware to Texas. His many fans on the platform duly voted with 87% in favour of moving.

Showing a fairly unsophisticated grasp of polling data Musk wrote…

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Adam McCulloch
1 1 minute read
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Adam McCulloch

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