Tesla awarded Elon Musk shares worth approximately $29 billion to ensure his ongoing leadership as the company shifts toward AI and robotics. This interim payment acknowledges Musk's previously invalidated $50 billion compensation package. A Delaware court's ruling deemed that the prior pay deal stemmed from non-independent negotiations. Musk will qualify for this new award if he stays in a top executive role for two more years, and if the previous compensation package isn't reinstated on appeal. Tesla's shares have dropped 25% this year due to decreasing sales and rising competition.
Tesla described the deal as an "interim award," a "good faith" payment to honor Musk's more than $50 billion pay package from 2018 that was struck down by a Delaware court last year.
Under the deal, Musk can claim the new award if he remains in a top executive role for another two years.
Tesla board members Robyn Denholm and Kathleen Wilson-Thompson said Musk was a "magnet for hiring and retaining talent" as the company moves more towards developing AI-powered automated transport and robotics.
Tesla shares have plunged 25% this year, amid flagging sales, and intensifying competition from both the big Detroit automakers and China.
Collection
[
|
...
]