Tesla revealed on Monday an interim compensation package valued at approximately 29 billion for Elon Musk, stressing the importance of retaining the contentious CEO during a time of intense competition for top talent.
This announcement comes as Tesla appeals a Delaware court decision that invalidated a 2018 compensation package estimated at 55.8 billion. With the appeal process ongoing, Monday's announcement serves as a temporary measure while the company formulates a long-term CEO compensation strategy, as stated in a letter to shareholders.
The decision occurs in the wake of a competitive struggle for leading engineering talent, as firms such as Google and Meta vie for authority in artificial intelligence.
The letter from Tesla, signed by board members Robyn Denholm and Kathleen Wilson-Thompson, described Musk as a magnet for hiring and retaining talent at Tesla, highlighting the companys shift from solely electric vehicles to aspiring for leadership in AI, robotics, and related fields.
We have recommended this award as a first step, good faith payment, said the letter. Retaining Elon is more important than ever before.