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Tesla Grants Elon Musk Stock Bonus
(MENAFN) US electric vehicle behemoth Tesla revealed late Sunday that its Chief Executive Officer, Elon Musk, will be granted a stock award estimated at nearly $29 billion.
"On August 3, 2025, the Company approved an award of 96 million shares of restricted stock ('2025 CEO Interim Award') to Mr. Musk under the Company's 2019 Equity Incentive Plan ('2019 Plan')," the enterprise stated in a regulatory disclosure.
The compensation package is scheduled to vest over a two-year period, Tesla noted, as long as Musk continues serving as CEO or holds another crucial leadership position within the organization.
According to a news agency, if the ongoing legal proceedings concerning Musk's 2018 compensation deal conclude in his favor, enabling him to activate the more substantial $56 billion compensation plan, this newly announced award will become void.
The earlier judgment in the legal case "Tornetta v. Musk" found that the 2018 pay package had been improperly authorized.
This decision was upheld in January by Chancellor Kathaleen McCormick.
In June 2024, Tesla shareholders voted in favor of the contested compensation plan.
The matter is currently under review by the Delaware Supreme Court, given that Musk's 2018 package included a series of corporate performance milestones, all of which were achieved.
In her January opinion, the court described the plan as "the largest potential compensation opportunity ever observed in public markets," adding that it was 33 times greater than Musk’s earlier incentive package.
"On August 3, 2025, the Company approved an award of 96 million shares of restricted stock ('2025 CEO Interim Award') to Mr. Musk under the Company's 2019 Equity Incentive Plan ('2019 Plan')," the enterprise stated in a regulatory disclosure.
The compensation package is scheduled to vest over a two-year period, Tesla noted, as long as Musk continues serving as CEO or holds another crucial leadership position within the organization.
According to a news agency, if the ongoing legal proceedings concerning Musk's 2018 compensation deal conclude in his favor, enabling him to activate the more substantial $56 billion compensation plan, this newly announced award will become void.
The earlier judgment in the legal case "Tornetta v. Musk" found that the 2018 pay package had been improperly authorized.
This decision was upheld in January by Chancellor Kathaleen McCormick.
In June 2024, Tesla shareholders voted in favor of the contested compensation plan.
The matter is currently under review by the Delaware Supreme Court, given that Musk's 2018 package included a series of corporate performance milestones, all of which were achieved.
In her January opinion, the court described the plan as "the largest potential compensation opportunity ever observed in public markets," adding that it was 33 times greater than Musk’s earlier incentive package.
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