Tesla announced a proposed compensation package for CEO Elon Musk worth approximately $29 billion in shares. The package is to be voted on at the annual shareholder meeting in November and is contingent upon the Delaware Supreme Court's decision regarding Musk's previous compensation package. If the court overturns a prior ruling, the package may become void. The board formed a special committee to establish the new package, which involves 96 million shares vesting in two years, with no performance goals tied to the compensation.
Musk has threatened to stop working on AI and robotics at Tesla unless he gains more control over the company. This followed a multi-million dollar talent war among the biggest companies in the artificial intelligence space.
Tesla's board of directors formed a special committee earlier this year, consisting of chairwoman Robyn Denholm and board member Kathleen Wilson-Thompson, to sort out a new compensation package.
The proposed compensation package for CEO Elon Musk involves giving him 96 million shares, which will vest in two years, provided he serves continuously in a leadership role.
The new compensation package does not appear to be tied to specific goals like increasing the company's stock price, representing a shift from previous compensation structures.
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