Elon Musk's response to a Delaware judge voiding his $55 billion compensation package was swift—he announced Tesla's move of incorporation to Texas.
This decision aligns with Musk's known tendency to hold grudges. Interestingly, this development coincided with hundreds of CEOs voting Musk as America's most overrated Chief Executive Officer.
The ruling by Judge Kathaleen St J McCormick sided with a Tesla shareholder's lawsuit, asserting that the company breached fiduciary duty by enriching Musk by $55 billion.
In response to the court decision, Elon Musk took to Twitter, advising against incorporating companies in Delaware and suggesting Nevada or Texas as alternatives for those who prefer shareholder influence. He further conducted a poll on Twitter, asking if Tesla should change its state of incorporation to Texas, where the company's headquarters is located. With 1.1 million participants, the poll concluded with 87.1% in favor of the move.
Elon Musk, relying on the poll's outcome, announced that Tesla would promptly initiate a shareholder vote to shift its state of incorporation to Texas. Musk's use of polls for significant decisions isn't unprecedented; he previously reinstated Donald Trump's account in 2022 based on similar results. There was also a poll about Musk stepping down as the platform's CEO, where most respondents favored his departure. During that instance, Musk suggested that interference by bots might have influenced the poll outcome.
Elon Musk has secured the top spot in Fortune's survey of most admired companies, but not in a category he'd likely appreciate. For the second consecutive year, he claimed the number one position on the list of most overrated CEOs, with 399 votes. His rival, Disney's Bob Iger, came second with 302 votes. On the flip side, Microsoft's Satya Nadella was voted the most underrated CEO with 274 votes. Musk's ambitious promises and unmet targets, such as colonizing Mars and fully self-driving Teslas, contributed to his overrated status. Tesla's recent financial performance and the devaluation of X/Twitter further added to the scrutiny.