With more money than anybody else on the planet, Elon Musk is about to become wealthier after the Board of Tesla granted him shares worth US$96 billion (A$148 billion).
Directors of the electrical vehicle, solar and clean energy giant on Sunday approved an award of 96 million shares to Musk, the company’s Chief Executive Officer (CEO), who must pay $23.34 per share, according to a filing with the United States Securities and Exchange Commission.
The shares, which vest on 2 August 2027 if he remains as CEO or an executive officer responsible for product development or operations, last traded at $309.26, valuing Tesla at $696.06 billion and making it one of the world’s 10 largest companies.
Tesla said the grant of the shares was a “good faith” first step to honour Musk's $50 billion-plus pay package from 2018 that was based on the same purchase price but was struck down by a court last year.
In a letter to shareholders, Tesla Directors Robyn Denholm and Kathleen Wilson said Musk had not received meaningful compensation for eight years despite “extraordinary work” which had translated into immense value for Tesla and shareholders.
“To recognize what Elon has accomplished and the extraordinary value he delivered to Tesla and our shareholders, we believe we must take action to honour the bargain that was struck in 2018. After all, “a deal is a deal”,” they wrote.
Denholm and Wilson-Thompson said they had reviewed investors’ letters and posts and acknowledged concerns about Musk's focus on his job, given his extensive business interests and other demands on his time.
Musk was a key adviser to President Donald Trump, helping to run the Department of Government Efficiency, before they fell out in acrimonious circumstances.
“From those communications, we know that one of your top concerns is keeping Elon’s energies focused on Tesla,” they wrote.
Musk’s net worth has been calculated at more than $400 billion, based on not only his 13-15% stake in Tesla but also other investments, including 42% of space exploration company SpaceX .
