Musk is getting millions of Tesla shares worth about $29 billion after judge ordered his pay package revoked
Summary
Tesla plans to give Elon Musk 96 million shares of restricted stock after a judge previously ordered the cancellation of his large pay package. Musk must pay Tesla a set price per share once the stock becomes available to him. The judge's decision came after finding that Musk had too much influence over the original compensation agreement.Key Facts
- Tesla is awarding Elon Musk 96 million shares of restricted stock valued at about $29 billion.
- A judge ordered the cancellation of Musk's prior pay package because of concerns about how it was negotiated.
- Musk must pay $23.34 per share to Tesla when the restricted stock vests.
- The 2018 pay package had a potential maximum value of approximately $56 billion based on Tesla’s stock price.
- A lawsuit by a Tesla stockholder led to the judge's decision to revoke the compensation.
- The judge awarded $345 million in legal fees to the plaintiff's attorneys, rejecting their larger request.
- Musk and Tesla are reviewing his compensation, with a special committee involved.
- Tesla shares have dropped 25% this year amid various internal and external challenges.
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