Delaware
Elon Musk's Neuralink moves legal home to Nevada after Delaware judge invalidates his Tesla pay deal
Elon Musk’s brain implant company Neuralink has moved its legal corporate home from Delaware to Nevada after a Delaware judge struck down Musk’s $55.8 billion pay package as CEO of Tesla.
Neuralink, which has its physical headquarters in Fremont, California, became a Nevada company on Thursday, according to state records. Delaware records also list the company’s legal home as Nevada.
The move comes after Musk wrote on X, formerly Twitter, that shareholders of Austin-based Tesla would be asked to consider moving the company’s corporate registration to Texas.
“Never incorporate your company in the state of Delaware,” he wrote in one post after the court ruling. He later added, “I recommend incorporating in Nevada or Texas if you prefer shareholders to decide matters.”
Legal experts say most corporations set up legal shop in Delaware because laws there favor corporations. “Delaware built its preferred state of incorporation business by being friendly to company management, not shareholders,” said Erik Gordon, a business and law professor at the University of Michigan.
On Jan. 30, Delaware Chancellor Kathaleen St. Jude McCormick invalidated the pay package that Tesla established for Musk in 2018, ruling that the process was “flawed” and the price “unfair.” In her ruling, she called the package “the largest potential compensation opportunity ever observed in public markets by multiple orders of magnitude.”
McCormick’s ruling bumped Musk out of the top spot on the Forbes list of wealthiest people.
Musk, a co-founder of the privately held Neuralink, is listed as company president in Nevada 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 needed to be rich to give Musk an incentive not to leave — a line of reasoning the judge shot down.
“Swept up by the rhetoric of ‘all upside,’ or perhaps starry eyed by Musk’s superstar appeal, the board never asked the $55.8 billion question: ‘Was the plan even necessary for Tesla to retain Musk and achieve its goals?’” McCormick wrote.
Musk’s fans argue that he shouldn’t be paid like other CEOs because he isn’t 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 an idea to the most valuable automaker in the world, last year selling more electric vehicles than any other company. His star power gets free publicity, so the company spends little on advertising. And he has forced the rest of the auto industry to accelerate plans for electric vehicles to counter Tesla’s phenomenal growth.
McCormick’s ruling came five years after shareholders filed a lawsuit accusing Musk and Tesla directors of breaching their duties and arguing that the pay package was a product of sham 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 lofty performance milestones.
Musk wrote on X last month that the first human received an implant from Neuralink. The billionaire did not provide additional details about the patient.
Delaware
Done Deal: 695 Delaware Avenue – Buffalo Rising
Ellicott Development has expanded it local property portfolio. Ellicott’s 4628 Group Inc. purchased 695 Delaware Avenue on Wednesday for $1.025 million. Fred Kaplan Living Trust was the seller. The 8,454 sq.ft., three-story barn-like structure with mansard roofed addition is occupied by media production and marketing firm Crosswater Digital Media. It was the home of WKBW radio for a number of years. The property totals 0.4 acres in size with a large parking lot fronting Delaware Avenue.
The property is bookended by the Westbrook Apartments and Wilcox House apartment buildings, both ten-story structures. It sits across the street from 700 Delaware, the former Computer Task Group Building Ellicott purchased in 2018 and is now occupied by the NYS Department of Environmental Conservation.
Delaware
Man, 77, dies after collision with teen driver near Hartly, police say
What to do if you come across a serious car accident
What to do if you come across a serious car accident
A 77-year-old man died following a two-car crash near Hartly on the morning of Dec. 10, Delaware State Police said.
The man, from the Dover area, has not been identified by police pending family notification.
According to police reports, the man was driving a Honda Accord east on Judith Road approaching Hartly Road about 9 a.m., as an 18-year-old woman was driving a Ford Focus south on Hartly Road approaching Judith Road.
Police reported that a preliminary investigation shows the Honda moved from the stop sign into the Ford’s path, causing a collision.
The man was pronounced dead at the scene. The woman, from Hartly, was treated at the scene. Police said she refused to be taken to a hospital.
Send tips or story ideas to Esteban Parra at (302) 324-2299 or eparra@delawareonline.com.
Delaware
Delaware County approves 19% property tax hike in 4-1 vote
MEDIA, Pa. (WPVI) — Delaware County Council voted 4-1 Wednesday night to approve a budget that includes a 19% property tax increase, despite objections from residents.
Property owners with a home assessed at $255,000 will pay about $188 more annually under the new budget, which takes effect next month.
Before the vote, some residents urged council to reconsider.
“I ask council to revisit the proposed budget, forgo voting tonight, avoid solving the entire deficit on the back of the hardworking taxpayers,” said Cynthia Sabitini of Upper Providence Township.
One councilmember agreed, but most did not.
“Simply put, I feel that the increase is too drastic,” said Councilmember Elaine Paul Schaefer.
“This needs to occur. I don’t like it, but it’s what has to occur,” said Councilmember Kevin Madden.
The hike follows a 23% increase last year and a 5% increase the year before. County officials say tax hikes were minimal for a decade, forcing steep increases now.
The current all-Democratic council argues they’re righting the financial ship after past Republican leaders didn’t do enough.
“For the first time in more than a decade, this budget puts Delaware County on track to have a truly balanced budget,” said Council Chair Dr. Monica Taylor.
County leaders say the increase addresses a structural deficit, but opponents blame spending on projects such as de-privatizing George Hill Correctional Center and creating a health department.
“How do you justify coming in with a deficit and then saying you’re repairing it after you grew it?” said Michael Straw of Media Borough Republicans.
Officials say future hikes should be minimal if the county makes any request at all, but some remain skeptical.
“I have my doubts that we won’t be seeing increases in the future,” Straw said.
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