Tesla Board Approves 96 MN Shares Interim Stock Award for Elon Musk
The Tesla Company’s big boss, that is, the board of directors, has decided to give a 96 million share gift to its CEO Alan Musk. These shares are about $ 29 billion, ie about 2.4 lakh crores. This decision was taken before the company’s annual meeting to be held on 6 November. After this news, Tesla’s shares climbed up 2.6% on Monday, that is, there was some stir in the market. The board said that this gift is a step of “goodwill”, meaning it was given with good heart. He also said, “There is a promise, no!”
Musk is Tesla’s CEO since 2008
Alan Musk is the CEO of Tesla since 2008, ie the company’s largest boss. Now this gift of 96 million shares given to him will make his chair further. The board says that by giving these shares, Musk’s dominance in the company will gradually increase further. A special committee in Tesla said that this gift is necessary for Musk to focus on the company’s long -term plans and missions. The committee consists of Tesla’s chairperson Robin Denholm and an independent director Cathleen Wilson-Thompson.
CEO will have to remain till 2027
Along with giving shares, the board has also laid a condition, the board says that Alan Musk will get these 96 million shares when he will remain a big boss in Tesla till 2027. Also, after taking these shares, Musk will have to wait for five years, that is, they cannot sell them immediately. The permission to sell will be just to pay tax or pay the price of $ 23.34 per share like the 2018 award. If the Delaware Court fully accepted the 2018 CEO Award of Musk again, then this new award will either be canceled or there will be some cut. Meaning, Musk will not get the benefit of the same thing twice.
Last $ 50 billion package was rejected in court
Let me tell you that earlier this year, the Delaware court canceled the old gift of more than $ 50 billion given to Musk. The court said that the board did not work properly and did not get justice with investors. Musk appealed to the court in March, calling this decision wrong. He said that the lower court misunderstood the law.