Tesla’s board has reportedly established a particular committee to discover a brand new compensation association for CEO Elon Musk, as cited by dependable sources within the Monetary Instances.
This choice follows a Delaware court docket’s rejection of Musk’s unprecedented 2018 inventory award, leaving his future with the corporate in query.
The committee, which incorporates chair Robyn Denholm and director Kathleen Wilson-Thompson, is at the moment evaluating whether or not to suggest a brand new inventory bundle or different types of compensation if the Delaware Supreme Courtroom doesn’t restore the unique settlement. This bundle, beforehand valued at as much as $146 billion, was deemed extreme by a choose in January 2024.
In line with the Monetary Instances, Tesla has postponed its annual proxy submitting, doubtless delaying the shareholder assembly to provide the committee extra time. The corporate has additionally reportedly reached out to vital traders to assemble their opinions on Musk’s management and compensation.
The committee’s discussions are nonetheless within the preliminary phases, and no definitive selections have been reached. Any potential future inventory award would hinge on monetary, operational, and inventory efficiency standards.
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