Tesla’s board has recently formed a special committee to explore a new pay deal for CEO Elon Musk, following a Delaware court ruling that struck down his record-breaking 2018 stock award. The committee, led by chair Robyn Denholm and director Kathleen Wilson-Thompson, is tasked with reviewing potential options for a fresh stock package or alternative forms of compensation if the original deal is not reinstated.
The original stock package, which could have been valued at up to $146 billion, was deemed excessive by a judge in January 2024, leading to uncertainty about Musk’s future at the company. As a result, the committee is now considering various possibilities to address Musk’s compensation moving forward.
According to a report by The Financial Times, Tesla has delayed its annual proxy filing and potentially postponed its shareholder meeting to allow the committee more time to deliberate. The company has also reached out to major investors to gather their perspectives on Musk’s leadership and compensation.
While the committee is still in the early stages of discussions, no final decisions have been made yet. Any future stock award would likely be contingent on meeting specific financial, operational, and stock performance targets, ensuring that Musk’s compensation is aligned with the company’s overall success.
Overall, the formation of this special committee highlights Tesla’s commitment to addressing the issue of Musk’s compensation in a thoughtful and strategic manner. By seeking input from key stakeholders and exploring various options, the company is taking proactive steps to ensure that Musk’s pay aligns with his contributions to Tesla’s ongoing success.