Tesla Hands $ 29B $ Package $ to Elon Musk in the middle of “AI Talent War”

Tesla Board of Directors announced a new compensation package for CEO Elon Musk worth about $ 29 billion in shares, as the company referred to “AI’s talent war with a constant reproduction and the position of Tesla at a critical turning point” as reasons for arrival.

The huge wage package is allocated through the 2019 stock incentive plan that has already been approved by shareholders, so it will not go to vote, according to the vote. Organizational And Ann LeiptonProfessor at the College of Law at Colorado. Tesla says it will put a “long -term executive compensation strategy” to vote at the company’s annual shareholders meeting, which is scheduled to be held in November.

The new Musk’s new compensation plan will be canceled 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. The value of this payment package was about 56 billion dollars.

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.

At the same time, Musk built its AI company outside the Tesla called Xai, which now owns X, its social media platform. This happened while Tesla Sales growth disappeared Her brand was damaged by Musk’s involvement in the Trump administration.

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’s shopping trading price 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. Musk’s participation in the 2018 compensation package was one of the reasons 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.”

Update: This story and the address were updated to reflect that the award was approved by Tesla Council and does not need to vote for the shareholders.