Topline
Tesla approved a stock award worth around $29 billion to Elon Musk, the company disclosed in an SEC filing, in a move that comes after a judge struck down an earlier multibillion-dollar pay package granted to the carmaker’s centibillionaire CEO.
Tesla approved a stock award worth nearly $30 billion for its CEO Elon Musk.
Associated Press
Key Facts
In the regulatory filing, the company said it was granting 96 million shares of common stock to Musk as an interim award.
The committee which includes Tesla chair Robyn Denholm and board member Kathleen Wilson-Thompson told shareholders, “we know that one of your top concerns is keeping Elon’s energies focused on Tesla,” and the stock award was “a critical first step toward achieving that goal.”
As the legal case over Musk’s earlier pay package remains pending before court the committee said it “deliberated carefully” to grant this interim stock award to Musk “against the backdrop of the ever-intensifying AI talent war and Tesla’s position at a critical inflection point.”
The statement noted that a “longer-term CEO compensation strategy” for Musk will be put to a shareholder vote at the company’s November 6 annual meeting.
Crucial Quote
In the letter to the shareholders, the committee members noted: “While we recognize that Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging…we are confident that this award will incentivize Elon to remain at Tesla.” The board members also noted: “Losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla.”
How Has The Announcement Impacted Tesla Share Price?
The electric car maker’s shares’ rose sharply in premarket trading on Monday morning to $309.31, up 2.21% from Friday’s close. Tesla’s stock price is down more than 20% since the start of this year.
Forbes Valuation
Musk’s current net worth stands at $398 billion, according to Forbes’ estimates. According to the Real Time Billionaire’s list, Musk is the richest person in the world by a significant margin, ahead of Oracle founder Larry Ellison, Meta founder and CEO Mark Zuckerberg and Amazon founder Jeff Bezos.
Further Reading
How Tesla’s Board Should Rein In Elon Musk, According To Prominent Analyst (Forbes)
Elon Musk (And Tesla) Became Much More Unpopular —As Unfavorability Soars To 55% (Forbes)
Even Though Musk Got The Votes, He Won’t See $50 Billion For A Long Time (Forbes)
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