Tesla unveiled a new pay package for Elon Musk that guarantees shareholders won't face stock dilution if the stock price drops again. In response to a lawsuit, the board structured the package so that Musk receives 96 million shares if they lose the appeal. These shares would vest in 2027, dependent on Musk serving in key roles, and he cannot sell them for five years after vesting. This aims to keep Musk accountable and focused on delivering future innovations.
The new pay package guarantees shareholders won't face dilution if Tesla's stock declines again, addressing concerns from the previous grant where they risked getting nothing.
If the Delaware appeals court ruling is upheld, Musk would be granted 96 million shares at $23.34 per share, tied to future performance and tenure.
Musk cannot sell any vested shares until five years after the award, ensuring he remains committed to Tesla's innovation goals and enhances shareholder confidence.
The restructuring of Musk's compensation aims to align his interests with shareholders, particularly in delivering on upcoming projects like robotaxis and self-driving technology.
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