Tesla’s board approved a compensation package for Elon Musk worth about $29 billion in order to keep the chief executive focused on the company.
Tesla is awarding Elon Musk around $29 billion in shares as a legal battle looms over a prior multibillion dollar compensation plan for the chief executive.
A special committee of the company’s board of directors said the interim pay package would motivate Musk to “stay focused” on Tesla as the electric vehicle maker pivots to robotics and artificial intelligence.
Under the pay plan, Musk would receive 96 million shares valued at around $300 each as long as he remains in an executive position at Tesla for the next two years. On Musk’s social media platform X, the special committee said the executive has not received “meaningful compensation” for his work for eight years.
One of the world’s richest people, Musk owns about 13% of Tesla shares, making him the largest individual shareholder. The company is worth more than $969 billion based on current share prices. Tesla shares on Monday closed at $309.26, up 2%.
Tesla board members Robyn Denholm and Kathleen Wilson-Thompson said on X that the $29 billion award is a first step, “good faith” effort to compensate Musk in lieu of a longer term plan.
As Musk splits his time and energy among several ventures, including AI startup xAI and space exploration firm SpaceX, Tesla board members said they are eager to keep his attention focused on the electric vehicle maker.
