Tesla's board has proposed a substantial $29 billion compensation package for CEO Elon Musk, aimed at retaining his leadership amid ongoing challenges. This plan involves the vesting of 96 million shares contingent on Musk’s continued role and stock retention for five years.
The initiative follows a court ruling that invalidated Musk’s previous $56 billion pay package due to procedural flaws in its approval process. As Tesla grapples with declining sales and increased competition, particularly from Chinese manufacturers, the board believes this new arrangement will help keep Musk focused on the company’s core operations rather than pursuing ambitious projects outside traditional automotive goals.
Critics have raised concerns about the excessive nature of Musk's compensation, especially during a period of financial struggle for Tesla. Nonetheless, the company seeks to stabilize its leadership and encourage long-term commitment from its CEO as it navigates a challenging market landscape, hoping for a turnaround in its financial performance.
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