Tesla hands $29B comp package to Elon Musk amid ‘AI talent war’

Tesla’s board has approved a new $29 billion stock-based compensation package for CEO Elon Musk, citing the intensifying competition for AI talent and Tesla’s pivotal position in the industry. The package grants Musk 96 million shares that vest over two years, contingent on his continuous senior leadership role and a five-year holding period. Unlike his previous 2018 compensation plan, this new award is not tied to stock price performance goals. The shares come with a $23.34 purchase price per share, valuing the award at approximately $26.7 billion at current market prices. This new compensation plan is structured through Tesla’s 2019 Equity Incentive Plan, which shareholders have already approved, so it will not require a new shareholder vote. However, the package could be voided if the Delaware Supreme Court overturns a judge’s earlier ruling that struck down Musk’s 2018 pay package due to conflicts of interest and flawed negotiation processes. That 2018 plan, worth about $56 billion,