Tesla Awards Elon Musk $29 Billion in Stock Amid Pay Package Controversy

Tesla is awarding CEO Elon Musk 96 million shares of restricted stock worth $29 billion, shortly after a court ordered the company to revoke his previous pay package. In December, a judge had mandated the reversal of the initial multi-billion-dollar compensation due to alleged non-independent negotiations.

Tesla has announced that it will grant CEO Elon Musk 96 million shares of restricted stock, valued at around $29 billion. This decision comes just six months after a judge ordered the revocation of his massive pay package from 2018, which was engineered under questionable negotiations.

A court ruling in December by Delaware Chancellor Kathaleen St Jude McCormick found that Musk's pay package deal involved sham talks with Tesla directors lacking independence. The decision overturned the multibillion-dollar compensation amid ongoing legal battles over the package's validity.

Following the ruling, the plaintiff attorneys' request for legal fees in Tesla stock was also rejected, limiting their award to $345 million. As Musk appeals the order, Tesla has formed a special committee to reassess his compensation as CEO.

(With inputs from agencies.)