Massive $29 billion stock grant reaffirms Elon Musk's power at Tesla through 2027

Tesla's board has granted its CEO, Elon Musk, a substantial pay package valued at approximately $29 billion. This decision comes amid ongoing legal proceedings regarding Musk's 2018 compensation package, previously rescinded by a Delaware court, as reported by Yahoo Finance. Despite legal hurdles, Tesla executives are keen to recognize Musk's contributions to the company's unprecedented growth.

In the newly structured agreement, Musk will receive 96 million Tesla shares, available for purchase at a historic rate of $23.34 per share, mirroring the conditions of his original 2018 arrangement, according to CNN. The CEO must hold these shares for five years and continue in an executive role for two more years, as the company continues transitioning its focus from traditional electric vehicles to innovations like robotaxis and humanoid robots.

Musk's stand in politics has decreased Tesla's brand loyalty, as mentioned by CNN; however, the company's board appears resolute in retaining his expertise to steer Tesla through its forthcoming initiatives.

Read more Chicago Star:

• Chicago parks come alive as Midnight Circus blends spectacle with giving back
• Believe the hive hype at O'Hare airport
• 20th anniversary of Special Olympics Ducky Derby returns to the Chicago River
• Rivian supplier Adient accelerates into Illinois, adding to the state’s EV boom

Tesla's board members Robyn Denholm and Kathleen Wilson-Thompson emphasized in a letter to shareholders that this interim award is a "good faith payment." They acknowledged Musk's pivotal role and said the package is a step toward honoring agreements struck in 2018. The decision also seeks to quell concerns about Musk's recent diversions into politics and other business responsibilities, according to The Guardian.

While Musk's foray into politics has sparked fear of brand tarnishment, this latest move affirms benchmark loyalty, as Musk holds Twitter, SpaceX, xAI, and Neuralink. Tesla aims to keep him centered on fostering innovation and guiding the company's core strategy alignment, amidst changing vehicle line-ups and increased competition.