Outlook Web Desk
Amid a sea of controversies, the Tesla board has approved Elon Musk's $56 billion pay package.
The Tesla Board's decision comes as a major win for Musk after a Delaware judge has nullified the pay package in January 2024 due to flaws in the approval process.
Musk, who was at the meeting when the decision was made, was visibly elated with the decision of the board. "I just want to start off by saying, hot damn, I love you guys! We have the most awesome shareholder base. I mean it’s just incredible," stated Musk.
Despite Musk's win, legal challenges in Delaware remain with the judge noting the close ties the Tesla board shares with Musk.
The pay package win for Musk comes amid sexual harassment allegations against him. Recently, a WSJ report revealed that several female employees from SpaceX have accused his of "creating an environment of sexual harassment" in the workplace.
The pay package had been approved by the Tesla board in 2018 but was struck down by a Delaware court in January 2024. Judge Kathaleen McCormick had described the pay package as “unfathomable” and questioned the need for the package for Musk.
Musk's $56 Billion pay package is part of a ten-year performance plan. Under this, Musk will be granted as much as $55.8 billion worth in stock options if Tesla were to hit certain milestones. However, the current value of the options are now around $45 billion.
Musk, who has six companies under him including SpaceX, Twitter (Now X) and xAI, founded Tesla in 2003 and does not receive a salary for leading the company. However, under this package, he will now be eligible for the stock options.