Tesla has approved a new compensation package for CEO Elon Musk, granting him 96 million shares valued at roughly $29 billion.
The decision comes months after a Delaware court voided Musk’s original 2018 pay package, which was then worth more than $50 billion. The court ruled in January 2024 that the plan had been unfair to shareholders, citing a flawed approval process by Tesla’s board and excessive influence by Musk himself.
The new award, disclosed in a regulatory filing, mirrors the structure of the original package. Musk will be required to pay $23.34 per share for the restricted stock units as they vest, the same exercise price as the rescinded 2018 agreement.
Tesla’s board had earlier formed a special committee to reassess compensation matters involving Musk. While details of that review were not made public, the committee expressed confidence in the revised award.
“While we recognize 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 incentivize Elon to remain at Tesla,” the special committee said in the filing.
The filing also emphasized that the share grant is structured to gradually boost Musk’s voting power, a key consideration for both Musk and several major shareholders, who see it as critical to keeping him focused on Tesla’s long-term vision.
Musk, already Tesla’s largest shareholder with a 13% stake, is steering the company away from its long-promised affordable EV platform and toward ambitious new bets in artificial intelligence, including autonomous robotaxis and humanoid robots. Tesla’s evolving identity, from carmaker to AI powerhouse, adds further weight to the decision to secure Musk’s ongoing commitment.
Following the announcement, Tesla shares rose more than 2% in premarket trading.
