Core Points - Tesla's board approved a compensation plan granting CEO Elon Musk 96 million shares of restricted stock, valued at approximately $29 billion, marking a significant investment in leadership during a critical transformation period [1] - Musk is required to purchase the shares at a price of $23.34 each, consistent with the exercise price from the 2018 compensation plan [1] Group 1 - The 2018 compensation plan initially valued at $2.6 billion saw its value rise to $56 billion by early 2024, but was later invalidated by a Delaware court due to improper negotiations by Musk with non-independent directors [3] - The court's ruling indicated flaws in the approval process by Tesla's board, which was deemed unfair to shareholders [3] - Musk appealed the court's decision, arguing that the plan significantly benefited Tesla, while also relocating the company's registration from Delaware to Texas, citing the court ruling as part of the reason for the move [3] Group 2 - A special committee was formed by Tesla's board to reassess Musk's compensation, defining the new issuance of 96 million shares as a temporary reward [3] - Musk will be eligible for new rewards if he remains in a senior management role for two years and if the Delaware court upholds its ruling [3] - If the court reinstates the 2018 performance rewards, the new temporary grant will be forfeited to prevent double-dipping [3] Group 3 - The new stock award will vest two years from the grant date, requiring Musk to hold the position of CEO or an executive responsible for product development [4] - Musk is prohibited from selling or transferring the awarded shares for five years, ensuring his long-term focus on Tesla's strategic development [4] - This new award will increase Musk's ownership stake in Tesla from 12.7% to over 15%, with the board emphasizing the importance of retaining Musk amid his involvement in multiple projects [4]