Tesla board approves new £22bn pay package to keep Elon Musk
Tesla's share price of $309.60 values the package at £22.3billion, but under the plan Musk must pay the company $23.34 a share – about £1.7billion.
The firm said it was 'an important first step' in compensating Musk for 'his extraordinary work', adding: 'Retaining Elon is more important than ever before', and crucial in attracting new talent as Tesla shifts its business towards AI and self-driving robo-taxis.
Daniel Ives, analyst at Wedbush Research, said the package would be enough to 'keep Musk as chief executive of Tesla at least until 2030,' and that he was the firm's 'most important asset'.
Musk, the largest shareholder with a 12.7 per cent stake, threatened to quit if he was not given more shares, saying activist shareholders could 'easily' oust him.
He and the company remain embroiled in a legal battle in Delaware over a £42billion pay award granted to Musk in 2018. That was struck down by a judge last year, who ruled it excessive.
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