Tesla CEO Elon Musk said Thursday that company shareholders will vote on whether to move its registration to Texas after a Delaware judge tossed out a multibillion-dollar bonus package for Musk on Tuesday.
Delaware Chancery Court Judge Kathaleen McCormick ruled Tuesday that Musk cannot keep a record-breaking compensation agreement worth up to $55.8 billion because it was determined unfairly and Musk controlled the board that authorized the package. A group of shareholders challenged the bonus plan in 2018, just after it was announced.
The ruling is a massive financial hit for Musk, with financial analysts projecting it could strip him of his title of richest man in the world. Musk lost the title to French luxury goods magnate Bernard Arnault this week, according to Forbes .
Musk railed against Delaware corporate regulation in social media posts following the ruling, including republishing a Wall Street Journal op-ed critical of the state and publicly regretting the choice to register Tesla there.