Musk receives $29 billion Tesla stock reward
Tesla authorized the interim stock award of 96 million shares, worth $29 billion, to CEO Elon Musk on Monday. Tesla’s board authorized the “2025 CEO Interim Award” stock reward on August 3. In an SEC filing, the business stated that Musk’s shares will vest two years after the grant date if he remains CEO or in an approved senior executive post.
A Delaware court overturned Musk’s 2018 remuneration package, worth over $50 billion, in 2024, citing the Tesla board’s poor approval process and unfairness to shareholders. Delaware’s Supreme Court is hearing the appeal. If the court rules that Musk can fully execute his 2018 performance-based options, the interim reward will be forfeited, the business said.
Tesla’s special committee directors, Robyn Denholm and Kathleen Wilson-Thompson, wrote to shareholders, “We believe we must take action to honour the bargain that was struck in 2018. Remember, ‘a deal is a deal.’ Thus, as proof that Tesla is committed to honoring its 2018 CEO Performance Award promises and plans to compensate its CEO for his future services proportionately with his achievements, we suggest this award as a first step, ‘good faith’ payment to Elon.” Musk, who has managed Tesla since 2008, is its top stakeholder with 13% of its shares. He has told numerous sources that he will head the company for at least five years more.
“We recognize that Elon’s business ventures, interests, and other potential demands on his time and attention are extensive and wide-ranging, including his leadership roles at xAI, SpaceX, Neuralink, X Corp., and The Boring Company, but we are confident that this award will incentivize him to stay at Tesla and focus his unmatched leadership abilities on creating shareholder value for Tesla shareholders and attracting and retaining The business stated that losing Elon would mean losing both his talents and a leader who attracts and retains talent at Tesla.
