{"id":7652,"date":"2025-08-04T18:24:02","date_gmt":"2025-08-04T18:24:02","guid":{"rendered":"https:\/\/stoxpo.com\/?p=7652"},"modified":"2025-08-04T18:24:03","modified_gmt":"2025-08-04T18:24:03","slug":"tesla-board-approves-29-billion-alternative-compensation-plan-for-elon-musk","status":"publish","type":"post","link":"https:\/\/stoxpo.com\/index.php\/2025\/08\/04\/tesla-board-approves-29-billion-alternative-compensation-plan-for-elon-musk\/","title":{"rendered":"Tesla Board Approves $29 Billion Alternative Compensation Plan for Elon Musk"},"content":{"rendered":"\n<h4 class=\"wp-block-heading\">New stock grant aims to secure Musk\u2019s commitment as legal battle over $56 billion 2018 pay package continues<\/h4>\n\n\n\n<p>Tesla\u2019s (TSLA) board has approved a nearly $30 billion alternative compensation plan for CEO Elon Musk, seeking to ensure his continued focus on the company amid an ongoing court dispute over his invalidated $56 billion 2018 pay package.<\/p>\n\n\n\n<p>The new plan, valued at $29.1 billion as of Friday\u2019s market close, must still receive shareholder approval. It offers Musk 96 million Tesla shares at $23.34 each, contingent upon his continuous service until August 3, 2027, in key executive roles. A five-year holding period applies to the shares, except for tax or purchase price obligations.<\/p>\n\n\n\n<p>If the Delaware Supreme Court reverses the Chancery Court\u2019s decision voiding the 2018 agreement, shares issued under the new plan would be forfeited. The court has not yet set a date for ruling on the case, which questions whether shareholder approval can override judicial review in corporate governance.<\/p>\n\n\n\n<p>Tesla\u2019s original 2018 plan tied Musk\u2019s compensation to strict market capitalization, revenue, and profit milestones, all of which were met by late 2021. However, a Delaware judge voided the agreement citing conflicts of interest among board members and inadequate disclosures about their relationships with Musk.<\/p>\n\n\n\n<p>The alternative compensation plan comes at a time when Tesla faces sales pressure and increasing competition in electric vehicles and AI-powered technologies. Tesla reported a 12% year-over-year revenue decline in Q2, missing analyst expectations.<\/p>\n\n\n\n<p>Wedbush analyst Dan Ives called the move a strategic step to keep Musk committed, noting that competition for AI talent is intensifying. \u201cMusk remains Tesla\u2019s biggest asset,\u201d Ives said, adding that the new grant could keep him at the company until at least 2030.<\/p>\n\n\n\n<p>Shareholders are expected to vote on the proposal in the coming months.<\/p>\n\n\n\n<p>You might like this article:<a href=\"https:\/\/stoxpo.com\/index.php\/2025\/08\/04\/blade-air-mobility-sells-rideshare-business-to-joby-aviation-for-125-million\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Blade Air Mobility Sells Rideshare Business to Joby Aviation for $125 Million<\/mark><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New stock grant aims to secure Musk\u2019s commitment as legal battle over $56 billion 2018 pay package continues Tesla\u2019s (TSLA) board has approved a nearly $30 billion alternative compensation plan for CEO Elon Musk, seeking to ensure his continued focus on the company amid an ongoing court dispute over his invalidated $56 billion 2018 pay [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1183,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"8","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar-narrow","sidebar":"author","second_sidebar":"single-right","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"0","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"jnews_post_split":{"enable_post_split":"0","post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]}},"categories":[482,322,362],"tags":[421,416,418,417,559],"coauthors":[454],"_links":{"self":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/7652"}],"collection":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/comments?post=7652"}],"version-history":[{"count":1,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/7652\/revisions"}],"predecessor-version":[{"id":7653,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/7652\/revisions\/7653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media\/1183"}],"wp:attachment":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media?parent=7652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/categories?post=7652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/tags?post=7652"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/coauthors?post=7652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}