In his efforts to retain Elon Musk, Tesla has found a formula to motivate him to follow as CEO: 29,000 million dollars

Tesla has approved a New Actions Package For Elon Musk valued at approximately 29,000 million dollars According to the market value. The new remuneration plan to the CEO of Tesla has, as the sole objective of binding the chair of executive director, at least In the next two years.

The measure arrives at a time when the company’s actions seem to have stabilized after successive political earthquakes caused by Musk, who have shaken the confidence of investors.

This tense calm has led to Tesla seeking to ensure the permanence of Elon Musk in front, with a new temporary agreement that, as They stood out in Financial Timesmove away from conventional ones Bonds by objectives of the CEO Of the big companies and seems to be more an incentive for Musk to change their attitude and focus on their work in Tesla.

29,000 million in exchange for behaving well

The new incentive package, valued in about 29,000 is, in reality, A temporary solution. The previous Musk remuneration bonus approved in 2018 for more than 56,000 million dollars was blocked up to twice by a delaware court before the complaint of a Tesla shareholder who He considered it excessive. The court He proved him.

That is, Elon Musk would have been working since 2018 in exchange for a symbolic salary to which the law forces (about $ 56,000 a year, According to the accounts presented by Tesla) to which the CEO resigned, since it could not collect the incentive bonus it did. With this new remuneration package, Tesla seeks a way to compensate Musk for the work of the last seven years, while unlocking his previous compensation. If you finally unlock Your 2018 bonus, This package will be canceled and will only receive the 56,000 million dollars that he had already achieved.

The package approved by Tesla gives Musk 96 million restricted shares that may be exercised with a fixed price of $ 23.34 per share, well below the current market prices that are around $ 300 per share. In order for Musk to receive these actions, he must continue playing a management role (not necessarily CEO, just manager) in Tesla up to at least 2027 and maintain blocked shares five years later to only sell what is necessary for taxes.

The electric car manufacturer has defined the offer as a “first crucial step” for a “long -term compensation strategy for CEO”. Its plan is to design a more detailed remuneration plan and with a more long -term vision for Musk before the company’s shareholders board in November, to submit it to a vote.

Attracts attention that, unlike what is usually common in Incentives to managersthis remuneration is not linked to the demand for greater dedication of Musk to solve the problems of Tesla or the achievement of certain challenges that the company has ahead, such as overcoming The fall in sales In good part of the world markets, the Robotaxi implantation autonomous or the development of Optimus robots.

Tesla seems to conform to Elon Musk occupies CEO’s chair for the next two years, a rather lax demand taking into account that a few months ago investors claimed Musk to dedicate At least 40 hours per week to Tesla, considering that divides its time into other companies such as Spacex, Neuralink and XAI.

Musk motivation and future

A few months ago, before the judicial blockade of his 2018 bonus, Musk himself already stated that he can “lose motivation” if he is not compensated properly and dedicate Even less time To Tesla. Therefore, this millionaire package is key to having it focused on the company and preventing it from dispenseing in its other projects.

As the Wall Street Journal remembered, Elon Musk said he wanted to have enough control Voting not to be “unseed by activist investors.”

“It is not a matter of money. It is a reasonable control over the future of the company. Above all, if we are building millions, potentially billions, of humanoid robots. I can not sit wondering if the activists are going to throw me for political reasons. It would be unacceptable. That is the only thing that matters,” he said In an interview During the Catar Economic Forum in May.

The main trick in Tesla’s manga is that Musk, in addition to its CEO, is also one of its main shareholders, controlling approximately 20% of its actions. That is some 194,000 million dollars of your personal fortune. Which is already in itself A good incentive.

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Image | Tesla, dvids (Trevor Cokley)