Elon Musk gets massive $29bn Tesla share award

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Billionaire Elon Musk has been awarded a $ 29 billion big shares in a new salary deal by Tesla, as the company is trying to keep it at a high position during a turning point in its future.

The purpose of the contract with Farah Delhi is to secure the leadership of the Musk because Tesla has shifted its focus from electric cars to robotics and humanoid robots – a bold move at a time when its primary car business faces a difficult time.

The company described the “interim award” of 96 million new shares as the first step, paying “good faith” to honor Musk’s salary package of more than $ 50 billion from 2018, which was terminated by the Delaware court last year.

The Musk can claim the new award if it has been in the high executive role for another two years and the court currently does not restore the 2018 package on appeal.

It has to hold shares for five years and can buy them at $ 23.34 per share, which is like the 2018 Award exercise price. Tesla will also present a long -term CEO to vote for the long -term CEO’s compensation project at its annual investors meeting on November 6.

The move is aimed at maintaining Tesla’s public face and its robotics strategy architect, which focuses on an electric vehicle making company as it changes cyber cabus and robotics from its main auto business.

It seems that any speculation is also eliminated that due to the recent turmoil months, patience can be worn with the board’s musk, which is included in the CEO’s politics.

The company’s maximum control move shows that the directors still see it as the best to deal with the growing list of Tesla’s challenges in the coming years.

Its aging vehicle is falling to the company due to a lineup, tough competition and the right -wing political stand of Musk, which has tarnished its brand.

S&P Global Mobility Data, especially jointly with Reuters, shown that Musk ended US President Donald Trump last summer.

The involvement of Musk in politics and his broader business empire, including AI Startup X, has also raised concerns about his devotion to Tesla with his wealth. Musk has threatened to leave until he has much control over Tesla.

According to Reuters calculations based on the data compiled by the LSEG, the New Stock Award will exceed 12.7 % to 15 % at this time.

Prior to Monday’s grant, Musk had no active compensation plan and Tesla said it had not received a meaningful salary since 2017. With the expectation of a legal battle on its 2018 package, the board said it had moved forward to maintain Musk’s “extraordinary abilities”.

Talent Magnet

“Although we recognize Elon’s business plans, interests and other potential demands about its time and attention are wide and widely … We believe that this award will encourage Elon to stay in Tesla,” said a special committee this year to consider Musk’s compensation. It consists of Chair Rubin Danholm and Independent Director Kathleen Wilson Thomson.

The company said it would not record compensation costs for the award as it does not currently expect the performance condition “to be met”. If this is likely to be completed by the award, it will re -evaluate and recognize it even after the two -year Westing period.

Last year, the company said that a new compensation package for a Musk equal to the 2018 project would result in an accounting charge of more than $ 25 billion. Although Monday’s unveiling plan is one -third of the 2018 project size, the share price has almost doubled over the past year, which has increased the potential cost.

“Here is the cost of compensation to Tesla,” said Lawrence Fuchi, a newsletter published by Tesla.

The Special Committee said that if the Delaware Courts 2018 is completely restored, the new shares will also be seized or offset, ensuring that there is no “double dip”.

Investors and analysts welcomed the news, with Tesla’s shares increased by about 2 % in early trade. The stock has lost a quarter of its price this year, to the last nearby.

“Under normal circumstances, billions of compensation package will produce some eyebrows.” The stock grant will tie Musk with Tesla for the next two years.

Fight for salary

Delaware’s decision on the 2018 Pay Pay package of the Corporate US, the Delaware, cited the flaws and unfair for investors in the board approval process. Musk launched an appeal against the order in March, claiming that a lower court judge made several legal errors in recovering record compensation.

He has argued that the package has resulted in a wonderful growth for Tesla and nevertheless, the lower chance of the Chancery has determined to be unfair with the shareholders, who voted twice for the approval of the project.

Over the past decade, Tesla’s shares have increased by about 2,000 2,000 %, which has performed more than 200 % increase in the benchmark S&P 500 index over the same period.

“This is just a reproduced version that was done years ago and was ruled by a judge,” said Charles Elson, founder director of the Veneburg Center for Corporate Governance at the University of Delaware. It effectively declares the Delaware Court’s decision effective. “

Elson filed the Emeraks briefs, supporting the court’s decision to revoke Musk’s 2018 award, “You don’t have to encourage you to stay.