Tesla requires the shareholders to agree

Tesla Board of Directors announced a proposed compensation package for CEO Elon Musk, which is worth about $ 29 billion in stocks, as the company stated “the war of increasing artificial intelligence talents and combating Tesla at a critical turning point” as reasons for payment.

The new plan for voting will be placed at the company’s annual shareholders meeting, which is scheduled to be held in November. It will also be completely removed if the Dilayer Supreme Court decides to cancel the judge January 2024 Resolution To strike the Musk compensation package for 2018 because of how to negotiate it behind the scenes.

Musk threatened to stop working on artificial intelligence and robots in Tesla Unless he acquires more control over the company. These threats preceded what are now the talent war in millions of dollars between The largest companies in the area of artificial intelligenceAlong with a rush of integration and acquisitions. Musk simultaneously built his AI outside Tesla called Xai, which now owns X, his social media platform.

Timing He said On Monday, its board of directors formed a special committee earlier this year consisting of President Robin Dunholm and member of the Board of Directors, Cathlein Wilson Thompson, in order to count a new package.

The prize, which they eventually decided to give Musk 96 million shares, will be launched within two years, provided that “it is constantly served in a major leadership role in Tesla” during this semester and holds the arrow for a period of five years. Unlike the previous Musk Tesla Award, this new package does not seem to be linked to goals such as the company’s share price.

At Tesla trading price before the market on Monday, this will reach about $ 29 billion. Musk will have to pay $ 23.34 per share, which is approximately $ 26.7 billion. Depending on how the Supreme Court rules in Dilayer regarding the appeal of Tesla, the package may be lost even “there can be no” double decline “, according to Tesla.

The company wrote: “Elon will not be able to preserve this new award in addition to the options that will be awarded under the CEO of 2018 if the courts are in our favor.”

Tesla said that Musk and his brother Kemal, who is also a member of the Board of Directors, has moved from the process of building this new compensation package. The participation of Musk in the 2018 compensation package, which amounted to about 56 billion dollars I decided to hit her After the trial of a lawsuit for shareholders.

McCromic said that the process of creating the 2018 plan was “very flawed” due to Musk’s inputs and its deep relationships on the Tesla board. It also criticized this plan for not including any terms that would link Musk with a “any specific amount of time”-a possible reason for the two-year pledge included in the new plan.

McCromic’s decision caused a stir among the largest Tesla fans and many of its shareholders. It is also what inspired the company to reintegrate from Deaware to Texas, a mandate with fewer protection of the shareholders written in its laws. Tesla went to the maximum contract of the shareholder vote “to reaffirm” the payment package. But McCromic It confirmed its decision in December 2024Testa’s legal vote and arguments for Tesla were “unprecedented theories (which) contradicts multiple strains of stable law.”