X @Herbert Ong

CEO Compensation & Governance - Tesla is addressing Elon Musk's compensation for his contributions since the 2012 CEO Performance Award, last earned in 2017 [1] - The company is still facing legal challenges in Delaware courts regarding the 2018 CEO Performance Award, despite shareholder support [1][4] - A "good faith" interim award is recommended to compensate Elon Musk, reflecting Tesla's commitment to the 2018 agreement [2] - The 2018 CEO Performance Award resulted in a $23 billion stock-based compensation charge but increased market capitalization by $735 billion [4] - The interim award will be forfeited if the 2018 CEO Performance Award is fully reinstated by the Delaware courts, preventing any "double dip" [8] Strategic Importance of Elon Musk - Tesla is transitioning towards becoming a leader in AI, robotics, and related services, requiring Elon Musk's leadership [5] - Retaining Elon Musk is crucial due to the intensifying competition for AI talent [6] - Losing Elon Musk would mean losing a leader who attracts and retains talent at Tesla [6] Interim Award Details - The Board has approved a recommendation to grant Elon Musk restricted stock equal to approximately one-third of the compensation he earned under the 2018 CEO Performance Award [7] - The award includes 96 million restricted shares, subject to Elon Musk paying a purchase price of $2334 per share upon meeting a two-year vesting term [8] - A mandatory holding period of five years from the grant date is required, except for tax payments or the purchase price [8]