The world’s richest man just got a lot richer.
In a regulatory filing, Tesla (TSLA) reported that CEO Elon Musk would receive 96 million shares of restricted stock as part of an “Interim Award” under the electric vehicle maker’s 2019 Equity Incentive Plan. At Friday’s closing price of $302.63, that would value the agreement at about $29 billion.
The company noted the decision came after the board earlier this year “established a special committee … to consider certain compensation matters involving Elon Musk.” That committee, consisting of disinterested directors Robyn Denholm and Kathleen Wilson-Thompson, made the recommendation, which was approved by the board yesterday.
Tesla noted the stock will vest two years from now, providing Musk remains CEO or holds another key executive position, and he will have to pay $23.34 per share for them. However, he will forfeit all the award if the courts eventually decide he can receive the estimated $56 billion pay package from 2018 that was approved by shareholders. A Delaware judge struck down that deal, agreeing with plaintiffs who argued that it was excessive.
Tesla shares were up about 1% today, but they’ve lost nearly a quarter of their value year-to-date.
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