Tesla approves share award worth $29bn to Elon Musk
has granted chief executive
Elon Musk
96 million shares worth about $29 billion (€25 billion).
The move is aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders.
In 2024, a Delaware court voided Mr Musk's 2018 compensation package, valued at more than $50 billion, citing the Tesla board's approval process was flawed and unfair to shareholders.
Mr Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation.
READ MORE
Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Mr Musk, without disclosing any details.
Tesla is at a turning point as Mr Musk, its largest shareholder with a 13 per cent stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker.
'While we recognise 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 incentivise Elon to remain at Tesla,' the special committee said in the filing.
The award is designed to gradually boost Mr Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added.
Tesla shares rose more than 2 per cent in premarket trading. – Reuters
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