In today’s Wall Street Journal, there’s an article about how Elon Musk and other billionaires are complaining about Delaware because it has too many rules. Delaware literally has more companies than people. Musk is worried because a Delaware court ruled his Tesla compensation package of $50 billion and above, which was approved by an loyalist board, to be excessive.
[[{“value”:”Today’s Wall Street Journal has a piece about how billionaires like Elon Musk are now complaining about Delaware because it has too many regulations. Delaware absolutely has more corporations than people. Musk is concerned because a Delaware business court ruled that his$ 50 billion plus Tesla compensation package, which was approved by the board of loyalists, was overwhelming and cruel to the shareholders who had filed lawsuits to stop it.
The judge declared Musk’s contract to be” the largest possible compensation plan in the history of people markets,” according to the New York Times, and deemed the approval process “deeply flawed.”
In a follow-up article, The Times reported that Musk has pledged 238 million shares for personal loans and owns about 411 million Tesla shares, each of which is worth about$ 78 billion. According to ProPublica, Musk, Jeff Bezos, Michael Bloomberg, Warren Buffett, and another absurdly wealthy Americans have been able to legally avoid paying the lion’s share of income taxes by borrowing against their sizable portfolios.
Musk expressed his regret in public over the Delaware ruling that would have removed him from his position as” the richest man in the world.” According to my colleague Abby Vesoulis, Musk has been abusing his totalitarian power at the expense of longstanding residents in Texas, where Space X is headquartered. He says he will try to recorporate there.
Not form a business in the state of Delaware.
January 30, 2024, Elon Musk ( @elonmusk )
The Journal notes that Texas is one of the newbies vying to attract more business registrations and that another contender, Nevada, offers “broad protections for directors and officers in some cases that Delaware would n’t, including involving poor individual gain,” pointing out that Musk is not the only significant shareholder displeased with Delaware’s rules.
Musk’s hissy fit is simply the most recent skirmish in the struggle for state business oversight, despite the fact that a state making an effort to protect business crooks may shock you —or should. In our American Oligarchy package, Vesoulis and Casey Michel, the author of the book American Kleptocracy, discussed how competition between states to attract businesses—which tend to overpromise and under-deliver on jobs and economic development —has led to a downward spiral that gives unelected billionaires control over native affairs and has made the United States the go-to destination for illegal wealth, both domestically and abroad.
Need a tax haven, please? a place to conceal and conceal stolen money? When you can find those services in South Dakota—and you do n’t even need to move there—why bother with the Caymans or the Bahamas? Check out Alaska, Illinois, Florida, Ohio, Missouri, Nevada, New Hampshire, Rhode Island, Tennessee, Wyoming, and the classic offender, Delaware, if you’re looking for other options.
Michel writes in the 1910s:
In addition to raising the bar on incentives by exempting corporations from taxes and compensating their directors for losses incurred by contentious shareholders, Delaware’s legislature also started to produce the most pro-corporate rulings in the nation. For good measure, the state also gave anyone who wanted to register a business that anonymity.
By 1929, taxes and corporate registration fees accounted for 42 % of state income. Delaware is now home to 1.9 million corporations, including more than 300,000 registered in 2022 only, despite having a population of just over 1 million. More than any other state, it generates about$ 2 billion in corporate taxes and fees each year. According to Jason Sharman, an authority on money laundering and business regulation at the University of Cambridge, Delaware lawmakers are made up of “in a very true sense” companies.
Texas is today a contender as well, right? All I can say is that there’s a problem when some overpaid moguls gripe that Delaware is n’t permissive enough to move the impunity needle.”}]] Today’s Wall Street Journal has a piece about how billionaires like Elon Musk are complaining about Delaware because it has too many regulations and absolutely has more businesses than people. Musk is concerned because a Delaware business court ruled that his$ 50 billion plus Tesla compensation package, which was approved by an enthusiastic board, was extreme.
In today’s Wall Street Journal, there’s an article about how Elon Musk and other billionaires are complaining about Delaware because it has too many rules. Delaware literally has more companies than people. Musk is worried because a Delaware court ruled his Tesla compensation package of $50 billion and above, which was approved by an loyalist board, to be excessive.
Illustration of Mother Jones created by Patrick Pleul, featured in Getty Images. Combat misinformation: Register for the complimentary Mother Jones Daily newsletter and stay informed on important news. An article in today’s Wall Street Journal discusses how billionaires such as Elon Musk are complaining about Delaware, which has more corporations than residents, due to its excessive regulations. Musk is concerned because a Delaware business court determined that his $50 billion-plus compensation package for Tesla was unfair to shareholders who opposed it. The judge criticized the approval process as being flawed and voided Musk’s contract, describing it as the biggest potential compensation plan ever in public markets. In a subsequent article, The Times reported that Musk possesses approximately 20 million shares of Tesla valued at roughly $78 billion, and he had committed 238 million shares as collateral for personal loans. As detailed by ProPublica, Musk, Jeff Bezos, Michael Bloomberg, Warren Buffett, and other incredibly wealthy Americans have been able to legally evade a significant portion of income taxes by borrowing against their large portfolios. Musk expressed his disappointment in the Delaware decision that would remove him from the title of the “world’s richest man.” He plans to reestablish his company in Texas, where Space X is based, where Musk has been exerting his wealthy influence over local residents, according to my colleague Abby Vesoulis. Avoid incorporating your company in Delaware. Päivitys Elon Muskin Twitter-tililtä 30. Tammikuu 2024. The Journal highlights that Musk is not the only large shareholder who is dissatisfied with Delaware’s regulations. It mentions that Texas and Nevada are also competing to attract more businesses to register with them, with Nevada specifically offering stronger protections for directors and officers in certain situations compared to Delaware.
