Key Takeaways
- Elon Musk awarded a massive US$29 billion pay package from Tesla.
- The pay package would give Musk 96 million shares of Tesla, each trading at over $300.
- Musk would have to pay $23.34 for each of those shares, equal to the amount he was expected to pay when he was first awarded his 2018 compensation package.
New York: Tesla’s board has agreed to give Elon Musk a massive pay package worth US$29 billion. This is a significant development for the company and its CEO.
The company’s latest pay package comes several months after a Delaware court rejected for a second time Musk’s 2018 performance award following a shareholder lawsuit.
Musk is currently appealing the order, reports CNN.
In a letter to shareholders on Monday, Tesla said that Musk has “not received meaningful compensation for eight years” and that its “legal efforts continue” to reinstate the 2018 pay package, adding that there’s “no clear timeline for resolution”.
The package would give Musk 96 million shares of Tesla, each of which trades at just over $300. Musk would have to pay $23.34 for each of those shares, equal to the amount he was expected to pay when he was first awarded his 2018 compensation package.
Musk is not paid a cash salary or bonus for working at Tesla. Rather, Musk, one of the world’s richest people, makes his money through lucrative packages of stock options that allow him to purchase millions of Tesla shares for a fraction of their market price.
Musk is Tesla’s largest individual shareholder — he owns about 13 percent of the company.
