Tesla's board approved a fresh compensation package for CEO Elon Musk worth approximately $29 billion after Delaware courts repeatedly rejected his previous $56 billion award. The new plan grants Musk 96 million restricted shares with an exercise price of $23.34 per share. Delaware Judge Kathaleen St. J. McCormick had voided the original 2018 compensation package twice, citing procedural flaws and excessive board influence. Tesla shareholders voted to reapprove the original package with 77 percent support, but the court maintained its position.
The revised award requires a two-year vesting period during which Musk must remain as Tesla's chief executive. He must retain the vested shares for five years after the vesting period ends. Tesla stated it does not expect the performance conditions for this interim award to be met anytime soon. The company anticipates no immediate compensation expense recognition upon issuing the award.
The revised award requires a two-year vesting period during which Musk must remain as Tesla's chief executive. He must retain the vested shares for five years after the vesting period ends. Tesla stated it does not expect the performance conditions for this interim award to be met anytime soon. The company anticipates no immediate compensation expense recognition upon issuing the award.
