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Tesla board forms panel to explores new pay deal for CEO Elon Musk: Report
Tesla's board has formed a special committee to review CEO Elon Musk's compensation, which could result in a new stock options package, the Financial Times reported on Wednesday.
The two-member committee comprises Tesla board Chair Robyn Denholm and independent board member Kathleen Wilson-Thompson, the newspaper reported, citing several people familiar with the matter.
Tesla did not immediately respond to a Reuters request for comment outside regular business hours. Denholm and Wilson-Thompson also did not respond to requests for comment.
The committee will also consider alternative ways to compensate Musk for his past work if Tesla's 2018 pay package isn't reinstated through a court appeal, the FT said, adding that any new stock options would depend on the company meeting financial, operational and share price targets.
In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders.
Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation.
Tesla is at a turning point as 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.
Last month, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details.
Tesla had also said it would file its annual proxy statement later than expected, as the board had not decided on a date for the annual shareholder meeting.
It typically submits its filing several weeks ahead of its annual meeting. Earlier this month, Denholm denied a Wall Street Journal report that said board members had reached out to several executive search firms to find a replacement for Musk.
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