Tesla Approves $290B Compensation Package for Musk

Tesla's board of directors has approved a new compensation package for CEO Elon Musk, granting him 96 million restricted shares. These shares are valued at nearly 300 billion dollars, based on the closing price of the stock on Friday. The decision was made by a special committee of the board, chaired by Robyn Denholm and Kathleen Wilson-Thompson, and subsequently approved by the full board.

According to the company's disclosure, Musk will pay 23.34 dollars for each restricted share, which is the same exercise price as his 2018 compensation package. The total value of the shares, if calculated based on the closing price on Friday, amounts to approximately 290 billion dollars.

Tesla, in a letter to its shareholders, emphasized the importance of retaining Musk at this critical stage. The company believes that this compensation package will incentivize Musk to continue leading Tesla.

Musk recently expressed concerns about losing control of the company on a social media platform. He clarified that he had not used his Tesla shares as collateral for personal loans. Musk aims to increase his stake in the company to 25%, stating that this level would provide strategic control without being so high that he could be ousted. Currently, Musk holds approximately 12.8% of Tesla's shares. To reach the 25% threshold, he would need to acquire an additional 3 billion shares.

Musk also mentioned that aggressive shareholders could potentially remove him from the company he founded. He plans to propose new compensation and voting rights schemes at the upcoming shareholder meeting to address these concerns.