Tesla awards boss Elon Musk $29bn in shares
Tesla granted her CEO Elon Musk $ 29 billion (21.7 billion pounds sterling) of her shares, in order to keep the company’s billionaire.
This decision comes after a US court canceled its remuneration package in 2018, worth more than $ 50 billion, judging that it was “unfair for shareholders”.
Musk appealed to the decision taken by the Court of Delaware in 2024 and Monday, Tesla told shareholders that it was “confident” that the 29 billion dollars of shares “will encourage Elon to stay in Tesla”, especially since “the war for AI talents is intensified”.
The price should stimulate Musk’s voting power on the board of directors of the electric car company.
“It is imperative to keep and motivate our extraordinary talent, starting with Elon,” wrote the board of directors of Tesla on X, a platform belonging to Musk, adding that “no one corresponds to the remarkable combination of Elon of experience in leadership, technical expertise”.
The company said that the billionaire had a “proven assess” in the construction “of revolutionary and profitable companies”.
Tesla said that if the Delware court had reintegrated the musk’s remuneration agreement in 2018, it would lose or make the last sharing price to avoid a “double decrease”.
The automotive manufacturer’s advice said that it hoped that its director general could receive the agreement worth $ 56 billion, which would be the greatest compensation agreement in the American history of companies.
The agreement was structured in such a way that if Mr. Musk did not cross certain stages – such as Tesla’s market value, sales and underlying profits – it would not be paid at all.
But he reached the targets that have been deposited.
Musk’s call to make his remuneration package reintegrate that the lower court made legal errors when canceling his remuneration package. He previously declared that it should be shareholders of the company who decide the remuneration.
Dan Ives de Wedbush Securities said that BBC Tesla’s decision was “what they had to do to keep it [Musk] to the company “.
“The biggest asset for Tesla is Musk, the board of directors must do it, and I think it’s a huge step forward.”
He added that during the “AI arms race”, the company could not afford to have a musk only “semi-engaged”.
Technological companies trying to assert themselves in the AI sector have offered enormous sums to rivals workers in order to persuade them to join them and stimulate their development.
Facebook founder, Mark Zuckerberg, would have recently tried to attract the best developers from Chatgpt-Creator Openai with remuneration offers from $ 1 million.
Meanwhile, Microsoft’s AI division, led by the former co-founder of Google Deepmind, Mustafa Suleyman, recently won several new hires in the ranks of Google.
Tesla said that it was at a “inflection point” and needed the prowess of Musk while it was passing as an electric vehicle company to an AI and robotics company.
The company added that the price on the part would be attractive for Musk “with others” requests for its time and attention “.
The other Musk’s roles include management positions at XAI, Neuralink and The Boring Company, which manufactures tunnels and other infrastructure in the United States.
He recently announced that he was returning from politics, after a passage as adviser to US President Donald Trump.
