Tesla Grants Elon Musk $29 Billion Share Award Amid Legal Challenges
Tesla has granted CEO Elon Musk 96 million shares valued at about $29 billion to retain him as the company's leader amid legal challenges to his original pay deal. A Delaware court voided Musk's 2018 compensation package, worth over $50 billion, due to flaws in the approval process by the Tesla board. Musk is appealing the court ruling, arguing that legal errors were made in rescinding the compensation. The board formed a special committee earlier this year to address compensation matters related to Musk without disclosing specifics. As Tesla transitions to focus on AI and robotics, the award of shares aims to incentivize Musk to remain committed to the company's mission. The award will gradually increase Musk's voting power, a key factor in keeping him engaged with Tesla's goals. Musk will need to pay Tesla $23.34 per share of restricted stock that vests, equivalent to the exercise price per share of the 2018 CEO Award.