Electric auto giant Tesla granted its shares of the company worth some $29 billion (€25 billion) in a deal aimed at keeping him at the helm of the firm.
Tesla described the deal as an “interim award,” a “good faith” payment to honor Musk’s more than $50 billion pay package from 2018 that was struck down by a Delaware court last year.
Delaware judge Kathaleen St. Jude McCormick had upheld her earlier order that Tesla revoke Musk’s multibillion-dollar pay package, arguing that Musk engineered the pay package in sham negotiations with directors who were not independent.
The ruling was part of a lawsuit filed by a Tesla stockholder who challenged Musk’s 2018 compensation package.
It all comes as , amid , and intensifying competition from both the big Detroit automakers and China
Musk’s earlier role in the administration of US President Donald Trump, and focus on , .
Tesla seeking to keep Musk
Under the deal, Musk can claim the new award if he remains in a top executive role for another two years.
Additionally, Musk is only eligible for the money if a court does not reinstate the 2018 package, which is currently on appeal.
“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 this award will incentivize Elon to remain at Tesla,” said a special committee Tesla formed this year to consider Musk’s compensation.
Tesla board members Robyn Denholm and Kathleen Wilson-Thompson said Musk was a “magnet for hiring and retaining talent at Tesla,” noting that the company is transitioning from its electric vehicle focus “to grow towards becoming a leader in AI, robotics and related services.”
Investors and analysts reacted positively to the deal, with Tesla shares rising nearly 2% in early trading.
Edited by: Wesley Rahn
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