Tesla Approves $29 Billion Compensation Package for CEO Elon Musk
Tesla’s board of directors approved a colossal new compensation package for CEO Elon Musk on Monday. The package, worth $29 billion, consists of 96 million restricted shares. This “interim award” arrives just six months after a Delaware court invalidated Musk’s previous $56 billion pay package due to shareholder litigation.
The new package stipulates that Musk must remain in a senior leadership role at Tesla for two years to vest the shares. If the Delaware court case results in the reinstatement of any part of his original 2018 compensation, the new award would be proportionally reduced to prevent double compensation.
Tesla’s board described the award as essential to retain Musk’s “extraordinary talent” amid a burgeoning AI talent war. They noted that recent months have seen nine-figure cash compensation packages for individual AI engineers.
The move comes at a time when Tesla faces declining sales and escalating competition in the electric vehicle market. Despite Musk’s pivotal role in the company’s AI and robotics pivot, the company’s stock has dropped 25% this year.
Source: CNBC