Tesla asks shareholders to approve $29B comp package for Elon Musk amid ‘AI talent war’

Tesla has proposed a new $29 billion compensation package for CEO Elon Musk, consisting of 96 million shares that would vest over two years, contingent on Musk maintaining a senior leadership role and holding the stock for five years. This package is designed to address the intensifying competition for AI talent and Tesla’s strategic position amid rapid developments in AI and robotics. Unlike Musk’s previous 2018 award, this new plan is not tied to stock price targets but requires Musk’s continued involvement with the company. The proposal will be voted on at Tesla’s annual shareholder meeting in November and could be voided if the Delaware Supreme Court overturns a prior ruling that invalidated Musk’s 2018 compensation package due to conflicts of interest during its negotiation. The 2018 package, worth about $56 billion, was struck down by Delaware Chancery Court Judge Kathaleen McCormick, who criticized the flawed approval process influenced heavily by Musk and Tesla’s board, and the lack of time-bound commitments from Musk