Elon Musk maintains the title as the highest-paid CEO in history with a $ 26 billion payment package-and the only thing he must do is to appear for two years

Robin Dunholm, Chairman of Tesla and his colleague Cathlein Wilson Thompson wrote in A. A message to the shareholders. “The war for artificial intelligence talents intensifies, with recent months, including billions of dollars in acquisitions for companies and cash compensation packages consisting of nine numbers for non -founders, artificial intelligence engineers.”

Even in this selected group, “no one matches” musk, the members of the Board of Directors wrote. Consequently, the prize of approximately $ 30 billion is necessary to maintain Musk’s concentration on Tesla – and it is on the recruitment of new talents to keep the EV manufacturer competitive in AI, robots, and robots, according to the council. Unlike the previous payment plan for Musk, which included Important value of the shareholders He had to overcome it, all musk to do to collect the new prize is Stay with Tesla As an executive head or a major executive role for the next two years. He also must keep the arrow until 2030, according to the award conditions, which will enhance its share from about 13 % to 15 %.

Brian Den, a 40 -year -old compensation practitioner and manager Institute for Compensation Studies At Cornell University I am told luck The new Musk Award is similar to what some experts referred to as “Granting Fog”.

Dan said: “If you are present and leave enough breath for you for the fog of the mirror, you will get it.” “These do not have performance goals.”

Technically, the prize will be offered in restricted shares, but Musk must pay 23.34 dollars per share to own the shares – the same strike price as its options for the year 2018. With the trading of Tesla shares at more than $ 300 per share, the MUSK arrangement gives about $ 280 per share of the compact value, which some COP experts referred to as “reduced options”.

Larry Keningham, director Dilayer UniversityThe Weinberg Center for Corporate Governance, regardless of how the award is classified for accounting or tax purposes, there is a simple and accurate description of it.

“The deep stock option grant is granted only to keep them,” Keningham said. luck In a statement.

The Musk salary package contains $ 26 billion

The new package creates what Eric Hoffmann described as ordinary consultants as a “ground and roof” arrangement directly linked to the outcome of the continuous litigation in Dilayer, which Tesla has removed. If the courts again surveyed its original prize for the year 2018 of 303 million options for shares, MUSK retains a share of 96 million new shares, worth $ 29 billion at the current stock price. But if any part of the original grant is returned, the new prize will decrease accordingly, Hoffman said.

“There is a item that says,” No dual dip “. But the 96 million stock prize can be used to make up for any of the original grant if it is lost in the context of the legal procedure.

Hoffman said the region, which Tesla Council is mistaken “unprecedented” in the executive compensation.

“There is no book playing for this,” said Hoffman, who analyzed the award conditions. “They gave the first grant, canceled a judge, made another grant, and they obtained it by the shareholders, and then this was suspended.”

To the level, the shareholders ’challenge to the Musk salary package for 2018 led to a historical opinion in which the Musk salaries were canceled. Then the Tesla Council sent a payment plan to shareholders in 2024 to obtain approval to vote in the range, and the shareholders voted to grant musk companies. Last December, the same judge – Advisor to the Delriwari Court, Cathaline McCromic –Reject Its previous decision, which has resumed Tesla since then.

In their message to investors, the Board of Directors wrote that there is no knowledge when the court will rule again and described this award as a “first step,” goodwill “to Elon.

However, Tesla’s performance in 2025 is far from 2018, when the Board of Directors was awarded for the first time a bold Moonshot grant. Follow the prize by hitting the value of Tesla 12 times. Its market value exceeded $ 1 trillion in October 2021 and again in May 2025. But Tesla recently struggled Tesla. A year to date, the price of his share decreased by more than 18 %, and Musk was a political active, supporting President Donald Trump although the affiliation stops the base of consumer that focuses on the climate in Tesla, Especially in California.

This time, the council left little by chance. Tesla has held an important legal barrier in May, making this award much more difficult.

After the rule of McCremik, the shareholders of Tesla Agree on a step From the merger in Delaware to Texas. In May, Texas amended its business law and modified its own regulations according to a day. the Modify regulations A new threshold has been established, so any shareholder who wants to challenge Musk’s salaries in court must keep at least 3 % of Tesla shares. The value is equal to more than 3 billion dollars.

“The main topic here is that Tesla has transferred its judicial jurisdiction to establish from Delaweer to Texas, and as a result, the advent of Tesla’s actions and compensation for Musk should be judged under the Texas Law, which is more lenient.” John coffee In a statement to luck. “A lawsuit may be filed against Tesla, but the possibilities are more in its favor in Texas.”

Texas followed Tesla’s move by carrying out a campaign to make it the first commercial state. At this stage, it is not clear how Texas courts will deal with a challenge.

“It will be interesting to know whether the Texas Court chooses to follow the Dilayer Analytical framework – or instead refuses to engage in the similar judicial scrutiny,” Koningham said. “The result can affect how other companies weigh with the relative advantages of Dillauer against Texas as a company home.”

Investors interact with musk companies

Tesla has a real army of participating individual retailers and many musk Twice nowGet it over the line with more than one majority support.

However, some of the leaders of the pension funds who oversee the assets of retirees who were invested in Tesla shares were less than the new Musk Prize.

“A 29 billion dollar compensation package for any executive manager, not to mention the person who was largely absent from his daily responsibilities with continued sales and the value of shares in the low expectations of investors, a researcher,” the New York City Observer Brad Lander said in a statement.

Lander said that the Tesla Council enriches musk at the expense of investors, “again.”

Illinois Treasurer Michael Fraretzi told luck A package of companies is $ 29 billion, “terrible on its face.”

“But in light of Elon Musk’s failure to neglect the daily Tesla needs, and the worse than the expected value of the company’s stocks, the package indicates that the board of directors is outside a step with their responsibilities towards investors,” Ferreish wrote in a statement. “With revenue lower expectations, the Board of Directors must be less interested in paying Fleeti for more greedy executives than long -term planning for the company’s success. Shares must request better governance for companies.”

وقالت SOC Investment Group ، التي مثلت مجموعة من المستثمرين مع ما يقرب من 8 ملايين سهم مستثمر في تسلا ، luck In a statement stating that today’s announcement included great acceptance by the Board of Directors. “Until $ 24 billion in stocks may not stimulate Elon Musk to stay for another two years, not to mention ensuring that he is devoting enough time and attention to the current low sales excel,” SOC wrote.