Sign in Subscribe
Chief executive officers

Tesla Awards CEO Elon Musk 96 Million Shares Worth $29 Billion

Strategic Insights

— 1 min read

Tesla is awarding its CEO Elon Musk with 96 million shares of restricted stock valued at approximately $29 billion, just six months after a judge ordered the company to revoke his massive pay package. This decision comes after the electric vehicle maker created a special committee to review Musk's compensation as CEO, following a judge's ruling that the pay package was awarded in sham negotiations with non-independent directors. Musk must first pay Tesla $23.34 per share of restricted stock that vests, equal to the exercise price per share of the 2018 pay package. The move is a significant development in the ongoing saga surrounding Musk's compensation package, which has been at the center of a lawsuit filed by a Tesla stockholder.

Key Takeaways:

  • Tesla is awarding CEO Elon Musk 96 million shares of restricted stock valued at approximately $29 billion.
  • The move comes after a judge ordered the company to revoke Musk's massive pay package in December.
  • Musk must first pay Tesla $23.34 per share of restricted stock that vests, equal to the exercise price per share of the 2018 pay package.
  • The special committee established by Tesla in March will review Musk's compensation as CEO.
  • The 2018 compensation package carried a potential maximum value of about $56 billion, which has fluctuated based on Tesla's stock price.
  • A judge ordered Tesla to pay plaintiff attorneys a fee award of $345 million for their work in the lawsuit.
  • Tesla's stock price has fluctuated significantly over the years, affecting the value of Musk's compensation package.

Statistics:

  • 96 million shares of restricted stock awarded to Elon Musk, valued at approximately $29 billion.
  • $23.34 per share of restricted stock that Musk must pay Tesla as exercise price.
  • Potential maximum value of 2018 compensation package: $56 billion.
  • Value of compelled fee award for plaintiff attorneys: $345 million.

Sources:

  • "Tesla is awarding its CEO Elon Musk with 96 million shares of restricted stock valued at approximately $29 billion, just six months after a judge ordered the company to revoke his massive pay package." - Tesla regulatory filing, [1]
  • "A judge ordered Tesla to pay plaintiff attorneys a fee award of $345 million for their work in the lawsuit." - Delaware Chancellor Kathaleen St. Jude McCormick, [2]
  • "Tesla's special committee established in March to review Musk's compensation as CEO." - Tesla regulatory filing, [3]

Read more