Tesla approved on Monday, August 4, the allocation of 96 million shares on Monday, August 4, for a value of around $ 29 billion (25.09 billion euros) to its CEO, Elon Musk, a measure aimed at keeping the billionaire entrepreneur at the head of the company while disputing a judicial decision that has canceled its prior remuneration of the remuneration, considered the shareholders for the shareholders.
In 2024, a Delaware court canceled the remuneration plan of Elon Musk for 2018, estimated at more than $ 50 billion, believing that the Tesla board of directors was vitiated and inequitable for shareholders.
In March, Elon Musk appealed this decision, saying that the judge of first instance had made numerous law errors when canceling his registered remuneration. At the beginning of the year, the electric vehicle manufacturer said that the Board of Directors had established a special committee responsible for examining certain questions related to Elon Musk’s remuneration, without, however, reveal details.
Increase Elon Musk’s vote power
Tesla is at a turning point, because Elon Musk, its main shareholder with a 13%participation, changes its positioning of electric vehicles to humanoid robots and robots, exceeding its image as a simple car manufacturer.
“Although we recognize that commercial projects, interests and other possible requests on the time and attention of Elon are large and varied (…), we are convinced that this award will encourage Elon to stay with Tesla,” said the special committee in the file.
The prize is designed to gradually increase Elon Musk’s vote power, an element that he and shareholders have constantly said it was essential to keep him focused on Tesla’s mission, added the committee. Elon Musk must pay Tesla 23.34 dollars per restricted action acquired, which corresponds to the price of the year per share of the 2018 CEO for the CEO, the committee said in its report. Tesla’s title won more than 2% in commerce before the Stock Exchange on Monday.
Source: BFM TV
