- More than two-thirds of the Fortune 500 is incorporated in Delaware, but Tesla CEO Elon Musk’s criticism of the state’s courts has coincided with other major companies leaving the state. A law firm that represented Tesla during Elon Musk’s pay challenge has helped draft a bill that proponents say will prevent such an exodus, but critics allege the bill’s expedited development lacks transparency.
Tesla CEO Elon Musk believes the legal system in Delaware has prevented him from getting a fair payday, despite the state’s reputation as the premier locale for incorporation owing to its specialized business court, expert judges, and well-honed case law. In fact, about half of Russell 3000 companies have exclusive-forum bylaw provisions in place that explicitly require legal disputes involving the company to be litigated in Delaware rather than in a less-sophisticated and more hostile legal venue in another state.
