In an effort to retain the billionaire entrepreneur at the helm amid a pivotal shift from its faltering core vehicle industry to robotaxis and humanoid robots, Tesla has awarded CEO Elon Musk shares worth around $29 billion.
In order to honor Musk’s 2018 compensation package of over $50 billion, which was overturned by a Delaware court last year, the corporation termed the “interim award” of the 96 million additional shares as a first step, “good faith” payment. If Musk stays in a high-level executive position for two more years and the court does not reinstate the 2018 package that is now being appealed, he is eligible to receive the new award.
He can purchase the shares for $23.34 each, which is the same as the 2018 award’s exercise price, and he must keep them for five years. At its annual investor meeting on November 6, Tesla will also vote on a longer-term CEO remuneration plan.
The goal of the move is to keep Musk, who is the public face of Tesla and the creator of its robotaxi concept, focused on the electric car manufacturer while it manages the transition from its core auto business to cybercabs and robotics.
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