Tesla has revoked the interim $29 billion pay package for CEO Elon Musk, after the Delaware Supreme Court restored his original $56 billion compensation award from 2018. The company said these actions are in line with their 'no double dip' principle, ensuring Musk cannot get a windfall if he prevails.
The saga began when a shareholder challenged Tesla’s pay package as improperly designed and not adequately disclosed to shareholders. A lengthy legal battle ensued before the court sided with the plaintiff, striking down the original compensation agreement. In response, Tesla drew up a $29 billion interim award and crafted an even more ambitious $1 trillion package.
Tesla is now making its own estimates about what milestones Musk might achieve, with an 'unrecognized stock-based compensation expense' of $9.97 billion for certain operational goals considered probable.
Despite the lofty figures, Tesla has imposed some restrictions on how and when Musk can sell shares from the restored 2018 package to mitigate any negative impact on the company.







