Electric vehicle maker Tesla handed its chief executive Elon Musk a $29 billion pay package Monday, as a lengthy legal battle over his compensation winds on.
The company said in a statement it will award an 鈥榠nterim鈥� distribution of 96 million Tesla shares to Musk as it 鈥榠ntends to compensate its CEO for his future services commensurate with his contributions to our company and shareholders.鈥�
鈥榃e have recommended this award as a first step, 鈥榞ood faith鈥� payment,鈥� it added when announcing the board鈥檚 approval of granting new shares to Musk.
鈥楻etaining Elon is more important than ever before.鈥�
The massive pay package comes eight months after the judge in a Delaware court rejected Musk鈥檚 even larger $55.8 billion compensation package at Tesla, denying an attempt to restore the pay deal through a shareholder vote.
In an initial decision in early 2024, the court struck down the package as excessive and unfair to shareholders. Musk has appealed the ruling.
The new package would boost Musk鈥檚 roughly 13 per cent stake in the company, at a time when he seeks to prevent a possible ouster by activist shareholders.
Musk would be required to forfeit the new compensation package should the appeals court rule in his favor and grant him the full 2018 compensation, which at the time was valued at $55.8 billion.
The new payout is sure to fuel concerns about the compensation for Musk, already the world鈥檚 richest man, and whether the Tesla board is placing a sufficient check on the company鈥檚 chief executive.
The statement posted on Tesla鈥檚 X account came in the form of a letter to shareholders written by Robyn Denholm and Kathleen Wilson-Thompson, the two members of the board鈥檚 special committee addressing the Musk compensation.
