Tesla is awarding CEO Elon Musk 96 million shares of restricted inventory valued at roughly $29 billion, simply six months after a choose ordered the corporate to revoke his large pay package deal.
The electrical car maker mentioned in a regulatory submitting on Monday that Musk should first pay Tesla $23.34 per share of restricted inventory that vests, which is the same as the train worth per share of the 2018 pay package deal that was awarded to the corporate’s CEO.
In December Delaware Chancellor Kathaleen St. Jude McCormick reaffirmed her earlier ruling that Tesla should revoke Musk’s multibillion-dollar pay package deal. She discovered that Musk engineered the landmark pay package deal in sham negotiations with administrators who weren’t impartial.
On the time McCormick additionally rejected an equally unprecedented and big fee request by plaintiff attorneys, who argued that they had been entitled to authorized charges within the type of Tesla inventory valued at greater than $5 billion. The choose mentioned the attorneys had been entitled to a payment award of $345 million.
The rulings got here in a lawsuit filed by a Tesla stockholder who challenged Musk’s 2018 compensation package deal.
That pay package deal carried a possible most worth of about $56 billion, however that sum has fluctuated over time primarily based on Tesla’s inventory worth.
Musk appealed the order in March. A month later Tesla mentioned in a regulatory submitting that it was creating a particular committee to have a look at Musk’s compensation as CEO.
