Unlike Musk’s previous pay plan, which included significant shareholder value hurdles he had to overcome, all Musk has to do to collect the new award is remain with Tesla as CEO or in a senior executive role for the next two years. “The central theme here is that Tesla has moved its jurisdiction of incorporation from Delaware to Texas, and as a result the propriety of Tesla’s actions and Musk’s compensation will have to be judged under Texas law, which is more permissive,” wrote Columbia law professor John Coffee in a statement to Fortune. “But in light of Elon Musk’s inattention to the day-to-day needs of Tesla, and the company’s worse than expected stock value, the package suggests a board out of step with their responsibilities to investors,” Frerichs wrote in a statement.
Author: Amanda Gerut
Published at: 2025-08-04 22:02:55
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