Tesla has awarded CEO Elon Musk an interim pay package of 96 million shares, worth around US$29bn, set to vest in two years if he remains in a key executive role.
The award will be forfeited if Musk prevails in his appeal over a US$56bn 2018 pay plan, which a Delaware court struck down in January for being improperly approved. The case is now before the Delaware Supreme Court.
Following the ruling, Musk moved Tesla’s incorporation to Texas and pushed for greater control of the company, saying he was unwilling to scale Tesla’s AI and robotics work without ~25% voting power. He had already launched an AI startup, xAI, now the parent of X (formerly Twitter), and is integrating its chatbot into Tesla vehicles.
The new pay plan was approved by a board committee and does not limit Musk’s ability to pursue other ventures or political activities. His support for Donald Trump and brief government role last year sparked backlash that has weighed on Tesla’s brand.
Tesla recently reported weaker earnings and falling sales. Shares rose over 2% on Monday. The company’s next annual meeting is set for November.
