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Tesla approved a package of 9.6 million shares for Ilon Musk.
Electric car maker Tesla has given 9.6 crore shares of the company to its CEO and chairman Ellon Musk. Their price is $ 29 billion i.e. about 2.50 lakh crore rupees.
The company described it as an award given in “Good Fath”. This step has been taken when the Delaware Court canceled Musk’s 2018 multi-billion dollar compensation package six months ago.
Why was such a big grant given?
Tesla told her investors that this share Grant Musk has been given to retain the company, as she is focused on Tesla besides her other companies such as SpaceX, XAI and Neuralink.
The company’s Special Committee said in the filing, “We know Ilon’s business and other interests demand their time and attention, but we are sure that this award will maintain him in Tesla.”
These shares are not such that Musk will get immediately. For this, they have to work on a large position in Tesla by 2027. Each share will also have to pay $ 23.34. This is equal to the price of the 2018 compensation package. Also, these shares cannot be sold for five years except to pay the price of tax or procurement.
Musk holds 13 percent stake in Tesla. He indicated in a call related to the company’s earnings last month that he wanted more shares in Tesla. He described it as his “big concern”.
Package of $ 56 billion was received in 2018, court canceled
In 2018, the compensation package given by Tesla to Ellon Musk was estimated to be around $ 56 billion at that time. According to today, it costs around 4.9 lakh crores in rupees.
The package was based on stock options, depending on the price of Tesla’s shares and the company’s performance. However, this amount kept changing over time, as the price of shares continued to fluctuate.
At that time it was considered the world’s largest CEO package. Last year, the Chancellor of Delaware Court of Chancellor, Cathleen St. J. It was canceled by McCormic. The judge said that Tesla’s shareholders were not given complete information about the package and the board members of the company were not completely independent.
Tesla has appealed against the decision and the company’s lawyers say that the shareholders had voted twice in favor of the package, so it should be re -implemented.
At this time Tesla is struggling with economic challenges
Tesla is currently struggling with economic challenges. The company’s profits have declined and there has been no increase in the quarterly income since the third quarter of 2024. Tesla’s profit in the third quarter declined from $ 1.39 billion to $ 409 million. Apart from this, Tesla’s shares have fallen by about 20 per cent so far this year, which has increased the concern of investors.
