Tesla‘s (Nasdaq: TSLA) board awarded CEO Elon Musk a new $29 billion compensation package, even as his previous record-breaking pay deal remains tied up in Delaware courts.
The package grants Musk 96 million Tesla shares at $23.34 each, reflecting the company’s ongoing efforts to retain its CEO amid competing business interests and legal uncertainties. It also comes as Musk continues appealing a Delaware judge’s decision to void his original 2018 pay package, now valued at up to $101 billion.
Delaware Chancery Court Judge Kathaleen McCormick has twice rejected the compensation deal, ruling it was unfairly negotiated despite Tesla shareholders voting to reinstate it in June 2024.
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In March, Musk’s legal team appealed to the Delaware Supreme Court, arguing McCormick made “multiple legal errors” in her rulings. The attorneys contend Musk’s 21.9% stake in Tesla didn’t give him controlling influence over the board during compensation negotiations.
Tesla board members Robyn Denholm and Kathleen Wilson-Thompson wrote to shareholders that Musk “has not received meaningful compensation for eight years” despite delivering growth that generated “immense value” for investors.
The also company warned that creating a new compensation plan from scratch could result in $25 billion in accounting charges.
The electric vehicle maker is pivoting toward artificial intelligence and robotics under Musk’s leadership, moving beyond its traditional automotive focus. Tesla’s market capitalization has grown by nearly 1,400% since the disputed 2018 package was approved.
Musk, who owns about 13% of Tesla, doesn’t receive a traditional salary or bonus. His wealth primarily comes from stock option packages tied to company performance milestones.
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