Elon Musk's $56 Billion Tesla Pay Package Approved - All You Need To Know

Outlook Web Desk

Elon Musk's Controversial Pay Package Approved

Amid a sea of controversies, the Tesla board has approved Elon Musk's $56 billion pay package.


A Win For Musk

The Tesla Board's decision comes as a major win for Musk after a Delaware judge has nullified the pay package in January 2024 due to flaws in the approval process.


"Hot Damn! I Love You Guys"

Musk, who was at the meeting when the decision was made, was visibly elated with the decision of the board. "I just want to start off by saying, hot damn, I love you guys! We have the most awesome shareholder base. I mean it’s just incredible," stated Musk.


Legal Challenges Remain

Despite Musk's win, legal challenges in Delaware remain with the judge noting the close ties the Tesla board shares with Musk.


Pay Package Approved Amid Sexual Harassment Allegations

The pay package win for Musk comes amid sexual harassment allegations against him. Recently, a WSJ report revealed that several female employees from SpaceX have accused his of "creating an environment of sexual harassment" in the workplace.


Why Was The Pay Package Nullified?

The pay package had been approved by the Tesla board in 2018 but was struck down by a Delaware court in January 2024. Judge Kathaleen McCormick had described the pay package as “unfathomable” and questioned the need for the package for Musk.


What Does The Package Entail?

Musk's $56 Billion pay package is part of a ten-year performance plan. Under this, Musk will be granted as much as $55.8 billion worth in stock options if Tesla were to hit certain milestones. However, the current value of the options are now around $45 billion.


How Much Is Elon Musk Paid?

Musk, who has six companies under him including SpaceX, Twitter (Now X) and xAI, founded Tesla in 2003 and does not receive a salary for leading the company. However, under this package, he will now be eligible for the stock options.