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Tesla board explores new pay deal for Elon Musk

  • In May 2025, Tesla's board created a dedicated committee to reassess the compensation arrangement for CEO Elon Musk following the invalidation of his previous $56 billion pay deal.
  • A special committee including Tesla’s lead director Robyn Denholm and board member Kathleen Wilson-Thompson has been established to consider alternative compensation plans should Elon Musk’s appeal be unsuccessful.
  • Elon Musk holds a roughly 13% share in Tesla, and the canceled 2018 compensation plan would have raised his ownership stake to more than 20%, highlighting ongoing uncertainty regarding his future influence over the company.
  • The Financial Times reported the committee might create a new stock option plan contingent on Tesla meeting operational and financial targets.
  • This review signals Tesla's attempt to align leadership incentives amid strategic shifts toward AI, robotics, and global expansion of products like Robotaxi and Optimus.
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regionalmedianews.com broke the news in on Wednesday, May 14, 2025.
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