Elon Musk

 Elon Musk received an interim pay package from Tesla in August 2025, consisting of 96 million restricted shares valued at about $29 billion, as part of a legal strategy to potentially reinstate his previously voided 2018 compensation plan. The new package is contingent on Musk remaining in a key executive role for two years and will be forfeited if the courts restore any portion of the original 2018 award, which was struck down by a Delaware court but is currently being appealed by Tesla and Musk.

 

Key aspects of the new pay package

• Structure: The award is in the form of 96 million restricted shares. 
• Value: At the time of the approval, it was valued at approximately $29 billion. 
• Vesting: The shares will vest in two years if Musk continues as a senior executive at Tesla. 
• Contingency: If a court restores any portion of Musk's 2018 compensation package, the new award will be forfeited or reduced. 
• Purpose: Tesla has described the new package as a "first step, good faith payment" to maintain Musk's leadership during the ongoing legal battle over the 2018 award. 

Background: The 2018 Pay Package

• The original compensation package approved in 2018 was a massive stock option grant with a potential value of around $56 billion, according to Business Insider and Fortune. 
• A Delaware court struck down this package in January 2025, citing a lack of full disclosure to shareholders and concerns about Musk's conflicting influence on the board. 
• Tesla and Musk appealed this decision, leading to the 2025 interim award. 

Why this matters

• Keeping Musk at Tesla:

  The interim award aims to ensure Musk continues in a top leadership role as the company focuses on its strategic shift into AI, robotics, and robotaxis. 
• Shareholder Concerns:

  Some analysts believe the new grant could alleviate shareholder concerns by providing some compensation and removing uncertainty over Musk's future leadership at Tesla, according to PBS https://www.pbs.newshour/economy/musk-is-getting-millions-of-tesla-shares-worth-about-29-billion-after-judge-ordered-his-pay-package-revoked and Business Insider.