Elon Musk scores a salary hike from Tesla, and you won’t believe the amount

The CEO of Tesla company and billionaire Elon Musk got another new pay package worth $29 billion. The new pay cheque comes in the form of 86 million along with Tesla shares each priced at $23.34. This raise comes in light of his massive influence in bringing Tesla as the global leader.

Elon Musk secures $29 billion Tesla pay package to lead company through 2027

Elon was last compensated in 2018, which was later struck down by a Delaware court. The court ruled that the compensation of Elon Musk gave him too much power which was unjust to the shareholders. Tesla is still now appealing to this decision. Amidst all this, the new package has been offered as a 'good faith' increment and aims to make sure the CEO continues to grow the company till 2027.

To earn the raise, Elon Musk must remain in a senior position in Tesla company and he can't sell these shares immediately. There is a time period of five years lock-in period which means he need to hold on it that long. The board of Tesla believes that its essential to retain Elon at a time when other companies are strategizing with AI tools and robotics. The board has also pointed out that Elon was not paid any fixed salary for the past eight years and only was paid on the basis of Tesla's performance.

The raise for Elon Musk could increase the ownership of Tesla probably from 13% to 20%. It will eventually strengthen his influence over the company. Despite a fall in Tesla's stock to 25% this year, the company remains hopeful for the upcoming future. The board is planning to share more of its future plan in the next meeting set on November 6, 2025. As per reports, investors are not very pleased with Elon Musk's raise.

Elon Musk's raise creates history in one of the biggest CEO payouts.

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