Tesla has granted CEO Elon Musk shares worth about 29 billion, in a new pay deal aimed at keeping the billionaire entrepreneur at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots.
The company described the grant of the 96 million new shares as a first step, good faith payment to honour Musks more than 50 billion pay package from 2018 that was struck down by a Delaware court last year. A longer-term CEO compensation plan will be put to a vote at its annual investor meeting on November 6.
The Delaware ruling had cited flaws in the boards approval process and unfairness to investors. Musk kicked off an appeal against the order in March, claiming a lower court judge made multiple legal errors in rescinding the record compensation.
The worlds most valuable automaker is at a turning point, with Musk its largest shareholder with a 13 stake, positioning it more as an AI and robotics company amid falling sales in its mainstay auto business and a slump in its share price.
The share award is designed to gradually boost Musks voting power, something he and shareholders have consistently insisted was key to keeping him focused on Teslas mission, said a special committee Tesla formed earlier this year to consider Musks compensation. It consists of chair Robyn Denholm and independent director Kathleen Wilson-Thompson.
