CHENNAI: Tesla Inc’s board has approved an interim stock award of 96 million shares for CEO Elon Musk, valued at approximately $29–30 billion, ahead of a fresh shareholder vote on his compensation plan, the company announced on Monday.
According to reports, the move follows the invalidation of Musk’s previous $56 billion pay package by a Delaware court earlier this year, which cited governance and conflict-of-interest concerns.
The newly granted shares mirror the exercise price of the original 2018 package at $23.34 each and are contingent on Musk remaining as CEO for at least two more years. The award was approved by an independent board committee, excluding Musk and his brother Kimbal Musk, who recused themselves from the vote.
The announcement sent Tesla shares up 2.6% in early trading, as investors viewed the decision as a stabilising move that secures Musk’s leadership at a critical time. Tesla continues to face rising competition in the EV sector, mounting regulatory scrutiny, and the ongoing fallout from the court’s ruling.
The company is also preparing for a shareholder vote that could ratify or revise Musk’s long-term compensation package. While some investors support tying Musk’s pay to aggressive growth milestones, critics remain concerned about governance standards, especially given Musk’s leadership roles at multiple other ventures.
The interim award is seen as a temporary fix while Tesla appeals the Delaware court’s decision and explores the legal implications of its recent corporate shift to Texas, the reports suggested.