The famous automotive company, Tesla Inc. approved a compensation of $29 billion for its CEO, Elon Musk, even though the court case regarding the previous salary package is still pending.
According to the official statement of the company, the Tesla Board of Directors has approved the granting of 96 million shares as an interim payment to Musk as a reward for his contributions and to ensure that he continues to lead the company.
The statement signed by Robyn Denholm and Kathleen Wilson-Thompson, members of the Tesla special committee, stated that the grant is an initial step as a ‘goodwill payment’ to recognize Musk’s contributions and to ensure that he continues to lead the company.
This move comes eight months after a Delaware court rejected a previous compensation package worth $55.8 billion, which it considered excessive and unfair to shareholders. Musk has filed an appeal against the decision.
If the appeals court rules in his favor and restores the original compensation package, Musk will have to forego this new compensation package.
Tesla's move is expected to reignite debate about the company's reliance on one individual as well as the level of transparency and board control over their top executives.
