The Tesla board has introduced it is awarding Elon Musk with 96 million restricted shares of the corporate, price round $29 billion based mostly on its present share value.
In a letter launched on Monday, Robyn Denholm and Kathleen Wilson-Thompson, members of the Tesla board of administrators, introduced that the pay bundle is the “vital first step in compensating Elon Musk for his extraordinary work at Tesla.”
In keeping with the letter, Musk has “not obtained any significant compensation for eight years,” and the $29 billion pay bundle is a “good religion” fee to the CEO.
Musk’s 2018 pay bundle, the highest in U.S. company historical past, has been tied up in authorized points attributable to an ongoing shareholder lawsuit. In December, a Delaware decide rejected the pay bundle for the second time, stating Tesla’s legal professionals had “no procedural floor for flipping” her preliminary determination. The decide, Kathaleen McCormick, first rejected the pay bundle in January 2024, stating that the Tesla board “failed to fulfill their burden” to show the compensation plan was honest and in shareholders’ greatest pursuits.
Tesla’s shareholder letter says the corporate has “no clear timeline for decision” of the lawsuit and that it’s ready to be assigned a listening to date to seem in entrance of the Delaware Supreme Courtroom.
Denholm and Wilson-Thompson wrote that the board is taking “decisive motion to acknowledge the extraordinary worth” Musk has dropped at the corporate by unanimously approving the pay bundle, with Musk and his brother, Kimbal Musk, recusing themselves.
The bundle dictates that Musk will be capable to buy 96 million Tesla shares at $23.34 per share (the inventory’s present worth is greater than $300). In return, Musk should serve repeatedly in a senior management function at Tesla for a two-year vesting time period. He additionally agrees to forfeit or return a portion of this award ought to his 2018 pay bundle be accredited.
Associated: Why Elon Musk’s Battle With Delaware Is About Extra Than a $55 Billion Pay Package deal
“It’s crucial to retain and encourage our extraordinary expertise, starting with Elon,” the letter learn, citing the continued battle for AI expertise and up to date headline-making pay packages for AI engineers.
Tesla’s share value rose upon the announcement and is up round 2% immediately on the time of writing. The inventory is down 18% 12 months up to now.
The Tesla board has introduced it is awarding Elon Musk with 96 million restricted shares of the corporate, price round $29 billion based mostly on its present share value.
In a letter launched on Monday, Robyn Denholm and Kathleen Wilson-Thompson, members of the Tesla board of administrators, introduced that the pay bundle is the “vital first step in compensating Elon Musk for his extraordinary work at Tesla.”
In keeping with the letter, Musk has “not obtained any significant compensation for eight years,” and the $29 billion pay bundle is a “good religion” fee to the CEO.
The remainder of this text is locked.
Be part of Entrepreneur+ immediately for entry.
