Elon Musk retains the title as the highest paid CEO in history with a package of $ 26 billion-and the only thing he has to do is to show up for two years

“It is necessary to maintain and motivate our extraordinary talent, starting with Elon,” wrote Tesla Chairman Robyn Denholm and director Kathleen Wilson-Thompson. “The AI talent war has intensified, including the acquisitions of companies with multiple left dollars and nine -digit cash compensation for unknown, individual AI engineers.”

Even in this selected group, “no one corresponds” to Musk, the members of the Board of Directors wrote. The price of nearly $ 30 billion is therefore essential for Musk to focus on Tesla – and forced him to hire a new talent according to the Board of Directors to maintain the competing EV in AI, robotics and robotaxi. Unlike the previous Musk Plan, which included significant obstacles to the value of the shareholders that Overcoma had to do, Musk must do everything to win a new award, will remain with Tesla as CEO or in a higher executive role in the next two years. Depending on the price conditions, they must also hold stocks until 2030, which will increase its ownership from approximately 13% to 15%.

Brian Dunn, 40 -year -old remuneration expert and director of the Institute for Compensation Studies at Cornell University, said Luck Muska’s new award is similar to what some experts have gone as “fog mirry grants”.

“If you are around and have enough breath in you to fool the mirror, you will get them,” Dunn said. “You have performance goals.”

Technically, the price will be awarded from limited shares, but Musk has to pay $ 23.34 per share to own an event – the same strike as its possibilities 2018. With Tesla’s shares for more than $ 300 per share, Musk’s arrangement is about $ 280 per built -in value to which some Compros moved as “discount”.

Larry Cunningham, Director of the Weinberg Center for Administration and Management of University of Delaware, said the appearance of how the valuation can be classified for accounting or tax purposes is a simple and accurate description.

“Grant with option options for deep money, awarded exclusively for maintaining,” Cunningham said Luck in a state.

Pay Pay Pay has $ 26 billion

The new package creates what Eric Hoffmann of Fairent Advisors described as the “flooring and ceiling” bound directly to the outcome of the nail in the Delaware, which Tesla calmed down. If the courts re -delete its original price for 303 million stock options in 2018, Musk will retain a new 96 million shares worth about $ 29 billion for the current price of shares. However, if any part of the original grant appears again, the new price will be reduced accordingly, Hoffmann said.

“He knows,” no double immersion, “he said. “But this award of 96 million shares could be used to create any of the original grants if it loses a legal action.”

Hoffmann said that the territory that the Tesla Council was pedaling is a “unprecedented” in powerful compensation.

“There is no book,” said Hoffmann, who analyzed the conditions of the price. “They made the first grant, was overturned by the judge; they made another grant, received it approved by shareholders, and then raised it.”

The shareholder challenge about the 2018 payment package in which Musk’s wage was canceled. The Tesla Council then smells the payout plan back to shareholders in 2024 for approval of the vote on the basis and shareholders vote in favor of Muska Dali Comp. Last December, the same judge – short Chancellor Kathaleen McCormick – from the reversed previous decision that Tesla has recalled since then from the reverse previous decision.

In its letter, the Board of Investors wrote that it is not possible to say when the court reigns and described this prices as the “first step” of the “good faith” of Elon. ”

Tesla’s performance in 2025, however, has been far since 2018, when the Council first amazed Musk’s bold grant for Moonshot. He watched the valuation by multiplying 12 times Tesla’s value. Its market ceiling exceeded in October 2021 and again in May 2025 1 trillion dollars. Recently, however, Tesla fought. The stock price falls by more than 18%annually and Musk was active political and supported President Donald Trump, although the association turned off the consumer base focused on the climate, especially in California.

And this time the Council left little luck. In May, Tesla erette a significant legal barrier, which is a challenge for this award.

After McCormick’s decision was approved by shareholders, they moved from integration into Delaware to Texas. In May, Texas changed his business law and Tesla modified his statutes according to a day later. The change on the basis of the regulation has created a new threshold, so every shareholder who wants to challenge Muska’s remuneration in court must have at least 3% of Tesla shares. The value is worth more than $ 3 billion.

“The main topic is that Tesla has moved its jurisdiction to integrate from Delaware to Texas and as a result, according to Texas, the owner of Tesla and the compensation of Muska, which is permissible, will be considered,” wrote Professor Columbia John Coffee. Luck. “Tesla can be sued, but chances are more in favor of Texas.”

Texas followed Tesla’s step by making a campaign to become it. At this point, it is not clear how the Texas courts would approach the challenge.

“It will be interesting to see that the court in Texas has decided to observe the analytical framework of the Delaware – or the instrumentation will not fall to join a similar court vote,” Cunningham said. “Outcoma could affect how other companies weigh the relative merit of Delaware versus Texas as a corporate house.”

Investors respond to Musk’s Combi

Tesla has a real army of engaged individual retail investors and supports Musk a lot and now voted for its plan twice, thus exceeding it with a line with more than most support.

However, some leaders of pension funds who supervised the downloaded assets invested in Tesla shares were less than three awards for Muska’s new awards.

“For a $ 29 billion compensatory package for each CEO, let alone one who was largely missing in their daily responsibility, because the sale and value of shares still does not reach investors’ expectations,” said New York City Brad Lander.

Lander said that the Tesla Council enriches Musk at the expense of investors, “again”.

Illinois State Treasure Michael Rratics said Luck The Compc $ 29 billion package is “on his face” unbelievable “.

“But with regard to the inattention of Elon Musk towards the daily needs of Tesla and Wers, the package suggests a advice that is out of step with their responsibility to investors,” Rripichs wrote at age. “Since income does not reach expectations, the Council should pay less to a greedy CEO than with long -term planning of the company’s success. Shareholders should apply for better management and management of the company.”

SOC Investment Group, which represents a group of investors with nearly 8 million shares invested in Tesla, said Luck In the beating that today’s announcement includes a striking advice of the Council. “Even another $ 24B in justice does not have to motivate Elon Musk to stay for another two years, let alone ensure enough time and attention to turn around the currently forfeiture,” Soc wrote.