Tesla approves share award worth $29 billion to CEO Elon Musk
(Reuters) -Tesla gave CEO Elon Musk about $ 29 billion worth 96 million new shares, which aimed to keep the billionaire entrepreneurs in the rudder while fighting a court decision that invalidates the original payment agreement because it was unfair to the shareholders.
In 2024, a Delaware court invalidated Musk’s 2018 compensation package, stating that the approval process of the Tesla Board of Directors was unfair for the defective and shareholders.
In March, Musk applied for appeal against the order and claimed that the sub -court judge had made more than one legal mistake in the cancellation of record compensation. Earlier this year, Tesla said that the board of directors was a special committee to consider some compensation issues regarding Musk without explaining the details.
Tesla is the largest shareholder with a 13% shareholder, Musk, from a promised affordable home platform to robotaxes and humanoid robots by shifting the company as AI and Robotics company is positioning more than a car manufacturer.
The new award was designed to gradually increase Musk’s voting power, and that he and his shareholders constantly say, he said it was the key to focusing on Tesla’s mission.
“Elon’s business initiatives, interests, and other potential demands for time and attention, wide and extensive … We are sure that this award will encourage Elon to stay in Tesla,” he said in a regulatory file on Monday. He said.
He added that if the Delaware courts fully restore the 2018 CEO Performance Award, the new temporary grant would either be lost or offset and that there will be no “double immersion”.
If the temporary reward remains in the role of a key manager only until 2027, it comes with a five -year waiting period, except to cover tax payments or purchasing price.
In the file of Monday, the company said that Seess should pay $ 23.34 per share to Tesla, which is equal to the price of the 2018 CEO award of the 2018 CEO award per share.
Tesla increased more than 2% in trade before shares.
Falling sales
Since the company was filled with a decline in sales by the aging vehicle series, Zorlu competition and the political attitudes of Musk’s political attitudes that alienate some potential buyers, the stock lost about a quarter of its value this year.
The challenges worsened by the US government’s interruptions to the homes, Musk says that the decreasing subsidies may lead to a “several rude neighborhood” for the company before a wave of income obtained from their own driving software and services.
