Latest news with #TeslaBoard
Yahoo
06-08-2025
- Automotive
- Yahoo
Tesla Approves Staggering $29 Billion Share Award for Elon Musk
The board of the world's most valuable carmaker has approved the award of shares to chief executive Elon Musk worth a staggering $29bn (£21.7bn) in efforts to prevent the billionaire from leaving the firm. The new award by Tesla, which amounts to 96 million new shares, comes as part of a new pay deal, after Musk threatened to leave the electric vehicle maker if he was not given more stock. It should also boost Musk's voting power on Tesla's board. Tesla's board wrote on X, which is owned by Musk that 'It is imperative to retain and motivate our extraordinary talent, beginning with Elon.' It added, 'We are confident this award will incentivise Elon to remain at Tesla.' Seven year battle The move comes after a seven year legal battle between Tesla and Musk, over a previous $56bn award for the chief executive, the largest in US history. The package was struck down by a Delaware court in 2024, who ruled it was excessive and 'unfair to shareholders' causing Musk to since repeatedly threaten to leave the company. The addition of 96m shares will raise Musk's holdings in the company from 13 per cent to approximately 16 per cent. Tesla's share price increased 2.58 per cent in pre-market trading to $309.38 (£232.03). The stock remains down by around a fifth since the start of the year. Uncertain future Tesla's board is fighting to resolve the uncertainty around Musk's future with the company, amid declining sales and increasing pressure from the crumbling relationship between the billionaire and US President, Donald Trump. The two men have thrown insults against each other on social media since the introduction of Trump's big beautiful bill and his implementation of anti EV-policies. Musk promised to shift his attention back to Tesla following the sharp fall of car sales in Europe and other markers during his time working for the Trump administration in the Department of Government Efficiency. Tesla is now focused on the roll out of a new cheaper model to boost sales and challenge the rise in competition in the sector, in particular from China. By City AM More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Automotive
- Yahoo
Tesla grants Musk massive pay deal to keep CEO on board amid legal battle
On Monday, Tesla granted CEO Elon Musk a new $29 billion pay deal aimed at keeping the billionaire entrepreneur at the helm as the company pivots from its struggling electric vehicle business to robotaxis and humanoid robots. The company described the "interim award" of 96 million new shares as a "good faith" payment to honor the more than $50 billion pay package from 2018 that was struck down by a Delaware court last year. Under the terms of the award, Musk can claim the shares if he remains a top executive at Tesla for another two years and a court doesn't reinstate the 2018 package that is currently under appeal. Musk also has to hold the shares for five years and can buy them for $23.34 per share, the same as the exercise price of his 2018 award. Teslas Continue To Be Vandalized Despite Ceo Elon Musk's Fallout With White House Tesla is also planning to put forward a longer-term CEO compensation plan at its annual investor meeting on Nov. 6. Read On The Fox Business App The move is intended to keep Musk, the public face of Tesla and the architect of its robotaxi strategy, focused on the EV maker as it undergoes a strategic pivot. It also comes amid speculation that the Tesla board's patience with Musk could be wearing thin because of the billionaire's political activism and tumultuous time working with the Trump administration. Musk Gave $15M To Support Trump, Republicans After White House Split, Called For New Party Weeks Later Sales have been falling at the company amid a tough competitive landscape and a stagnant vehicle lineup. Musk's political involvement and his wider business empire – including artificial intelligence startup xAI and space exploration firm SpaceX – have also prompted concerns about his focus on Tesla, which is the main source of his wealth. He has threatened to leave the company unless he gets more control over Tesla. Elon Musk Ally Who Worked On Doge Leaves Government With the new stock award, Musk's stake in Tesla would grow from its current level of 12.7%, the largest among stockholders, to 15%, according to Reuters calculations based on data compiled by LSEG. The move to give Musk more significant control of the company's board still sees him as the best-suited leader to address the company's challenges in the years ahead. Prior to Monday's grant, Musk had no active compensation plan, and Tesla said he hadn't received meaningful pay since 2017. The board said that with the legal fight over the 2018 package expected to continue, the interim award is a means of retaining Musk's "extraordinary talent." Reuters contributed to this article source: Tesla grants Musk massive pay deal to keep CEO on board amid legal battle
Bloomberg
05-08-2025
- Automotive
- Bloomberg
Elon Musk Gets $30 Billion to Stick Around
Listen and subscribe to Elon, Inc. on Apple, Spotify, iHeart and the Bloomberg Terminal. It was an expensive week for Tesla. On Friday, a jury in Miami found the electric car company 33% to blame for a deadly 2019 crash involving its full self-driving feature, ordering it to pay a total of $242.5 million in damages. A few days later, the company's board said it would dole out a $30 billion stock payoff to co-founder Elon Musk in order to keep him focused on the company, which has been bouncing from crisis to crisis.
Yahoo
05-08-2025
- Automotive
- Yahoo
Tesla just announced a $29 billion pay package for Elon Musk, saying 'no one matches' the CEO
Tesla has just unveiled a new $29 billion pay package for Elon Musk. Its board said the new "good faith" award was necessary to "incentivize and retain" Musk as CEO. It comes after Musk's massive 2018 pay package was struck down by a Delaware judge in late 2024. Tesla has unveiled a new $29 billion pay package for Elon Musk. The EV giant's board announced on Monday that it had granted Musk a "good faith" CEO performance award of 96 million restricted shares of Tesla stock, worth just over $29 billion based on the stock's current value. It comes as Musk's 2018 pay package, which was worth about $46.8 billion in June, remains in limbo after being struck down by a Delaware judge last December. In a letter to shareholders, the Tesla board members Robyn Denholm and Kathleen Wilson-Thompson said the new package was necessary to "retain and incentivize" Musk amid an "ever-intensifying AI talent war." "The war for AI talent is intensifying, with recent months including multi-billion-dollar acquisitions of companies and nine-figure cash compensation packages for non-founder, individual AI engineers," Denholm and Wilson-Thompson wrote. "Even among this group of highly talented individuals, no one matches Elon's remarkable combination of leadership experience, technical expertise, and, arguably most importantly, decades-long proven track record of building the most revolutionary and profitable businesses across different industries," they added. Both Musk and Tesla have fiercely criticized the decision to strike down the 2018 pay package after a shareholder lawsuit, with the billionaire launching an appeal in March. In a Securities and Exchange Commission filing also posted on X, the Tesla board members said the new $29 billion "CEO Interim Award" would include a requirement that Musk serve continuously in a senior leadership role at Tesla during the two-year vesting term. The award is also structured to "incrementally increase" Musk's voting rights upon grant. Musk has repeatedly expressed concern about his level of control over Tesla. In January, he said on X that he felt "uncomfortable" expanding the EV company's AI and robotics capabilities without having about 25% voting control. Denholm and Wilson-Thompson wrote that Tesla's board had voted unanimously to award Musk the interim award, with Musk and his brother, Kimbal, recusing themselves. Tesla shareholders would have a chance to vote on a longer-term CEO compensation strategy at the company's annual shareholder meeting in November, the letter added, and the interim award would be forfeited or returned if Musk's 2018 pay package is reinstated to avoid a "double dip." Investors have expressed concern over Musk's commitment to Tesla in recent months amid Tesla's poor performance and the billionaire's high-profile involvement in US politics. Tesla's share price is down about 25% this year. The stock is roughly 3% higher in premarket trading following the board's announcement. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-08-2025
- Business
- Yahoo
Tesla awards Elon Musk $29 billion worth of shares
Tesla is awarding its CEO Elon Musk a share package valued at about $29 billion. It is made up of 96 million shares of restricted stock. The move comes just six months after a judge ordered the electric vehicle maker to revoke Musk's massive pay package. On Monday, the company said in a regulatory filing that Musk must first pay it $23.34 per share of restricted stock that vests. That is equal to the exercise price per share of the 2018 pay package that was awarded to the company's CEO. In December, Delaware Chancellor Kathaleen St. Jude McCormick reaffirmed her earlier ruling that Tesla must revoke Musk's multibillion-dollar pay package. She found that Musk engineered the landmark pay package in sham negotiations with directors who were not independent. At the time, the judge also rejected an equally unprecedented and massive fee request by plaintiff attorneys, who argued that they were entitled to legal fees in the form of Tesla stock valued at more than $5 billion. The judge said the attorneys were entitled to a fee award of $345 million. The rulings came in a lawsuit filed by a Tesla stockholder who challenged Musk's 2018 compensation package, contending that shareholders who had voted for the 10-year plan in 2018 had been given misleading and incomplete information. In their defense, Tesla's board members asserted that the shareholders who ratified the pay plan a second time in June had done so after receiving full disclosures, thereby curing all the problems the judge had cited in her January ruling. As a result, they argued, Musk deserved the pay package for having raised Tesla's market value by billions of dollars. That pay package carried a potential maximum value of about $56 billion, but that sum has fluctuated over the years based on Tesla's stock price. Musk appealed the order in March. A month later, Tesla said in a regulatory filing that it was creating a special committee to look at Musk's compensation as CEO.
