Elon Musk gets shares worth almost $30B from Tesla
What's the story
Tesla's board of directors has approved a massive interim stock award worth nearly $30 billion for CEO Elon Musk. The new agreement includes 96 million shares of the electric vehicle maker, which will vest if Musk continues to lead the company for another two years. The move comes after a previous compensation package worth over $50 billion was canceled by the Delaware Chancery Court following a shareholder lawsuit.
Market reaction
Tesla shares rise
Following the announcement of the interim stock award, Tesla's shares rose by 2.7% to $310.80 before regular trading began in New York. The board emphasized the importance of retaining Musk in a shareholder letter, calling this award a first step "good faith" payment. "After all, a 'deal is a deal,'" they added, underscoring their commitment to honoring previous agreements with Musk.
Long-term commitment
Musk's leadership and future plans
The new stock award proposal highlights Musk's stronghold on the company and could keep him from stepping down as CEO anytime soon. He has been at the helm of the automaker since 2008 and had told Bloomberg in May that he plans to remain in his position for at least five more years. Despite his other commitments, including running four other companies, Tesla's board continues to support him.