Overview

• Tesla’s board approved an interim award of 96 million restricted shares valued at about $29 billion to retain Elon Musk.
• The shares vest over two years at a $23.34 exercise price and include a five-year holding requirement.
• If the voided 2018 pay package is reinstated, the interim award will be forfeited or offset to prevent duplicative compensation.
• A special committee led by Robyn Denholm and Kathleen Wilson-Thompson structured the deal as Tesla faces shareholder scrutiny and governance concerns.
• Tesla is set to hold a shareholder vote on a permanent CEO compensation plan in November as Musk’s appeal of the 2018 package proceeds.