11 Sources
[1]
Tesla proposes $29B comp package for Elon Musk amid 'AI talent war' | TechCrunch
Tesla has announced a proposed compensation package for CEO Elon Musk that would be worth around $29 billion in shares, with the company citing the "ever-intensifying AI talent war and Tesla's position at a critical inflection point" as reasons for the payout. The new plan will be put to a vote at the company's annual shareholder meeting, which is scheduled for November. It will also be entirely voided if the Delaware Supreme Court decides to overturn a judge's January 2024 decision to strike down Musk's 2018 compensation package because of how it was negotiated behind the scenes. Musk has threatened to stop working on AI and robotics at Tesla unless he gains more control over the company. Those threats preceded what is now a multi-million dollar talent war among the biggest companies in the artificial intelligence space, along with a rush of mergers and acquisitions. Musk has simultaneously built up his own AI company outside Tesla called xAI, which now owns X, his social media platform. Tesla said Monday that its board of directors formed a special committee earlier this year consisting of chairwoman Robyn Denholm and board member Kathleen Wilson-Thompson in order to sort out a new package. The award they ultimately decided on involves giving Musk 96 million shares that will vest in two years, provided that he "serve continuously in a senior leadership role at Tesla" during that term and holds the stock for five years. Unlike Tesla's previous award to Musk, this new package does not appear to be tied to goals like increasing the company's stock price. At Tesla's Monday pre-market trading price, that would be worth around $29 billion. Musk will have to pay a $23.34-per-share purchase price, bringing the total current value of the award to him to roughly $26.7 billion. Depending on how the Delaware Supreme Court rules on Tesla's appeal, the package may be forfeited so "there cannot be any 'double dip,' according to Tesla. "Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award should the courts rule in our favor," the company wrote. Tesla said Musk and his brother Kimbal, who is also a board member, recused themselves from the process of constructing this new compensation package. Musk's involvement in the 2018 compensation package, which was worth around $56 billion, was one of the reasons why Delaware Chancery Court judge chancellor Kathaleen McCormick decided to strike it down following a trial sparked by a shareholder lawsuit. McCormick said the process of creating that 2018 plan was "deeply flawed" because of Musk's input and his deep connections to the people on Tesla's board. She also criticized that plan for not including any terms that would bind Musk to Tesla for "any set amount of time" -- a likely reason for the two-year pledge included in the new plan. McCormick's decision caused an uproar among Tesla's largest fans and many of its shareholders. It's also what inspired the company to re-incorporate from Delaware to Texas, a state with fewer established shareholder protections written into its laws. Tesla went as far as holding a shareholder vote to "re-affirm" the pay package. But McCormick confirmed her decision in December 2024, saying the vote and Tesla's legal arguments were "unprecedented theories [that] go against multiple strains of settled law."
[2]
Tesla hands $29B comp package to Elon Musk amid 'AI talent war' | TechCrunch
Tesla's board of directors has announced a new compensation package for CEO Elon Musk worth around $29 billion in shares, with the company citing the "ever-intensifying AI talent war and Tesla's position at a critical inflection point" as reasons for the payout. The massive pay package is being allocated through a 2019 Equity Incentive Plan that is already approved by shareholders, so it won't go to a vote, according to a regulatory filing and Ann Lipton, a professor at the University of Colorado Law School. Tesla says it will put "a longer-term CEO compensation strategy" to a vote at the company's annual shareholder meeting, which is scheduled for November. Musk's new compensation plan will be entirely voided if the Delaware Supreme Court decides to overturn a judge's January 2024 decision to strike down Musk's 2018 compensation package because of how it was negotiated behind the scenes. That pay package was worth around $56 billion. Musk has threatened to stop working on AI and robotics at Tesla unless he gains more control over the company. Those threats preceded what is now a multi-million dollar talent war among the biggest companies in the artificial intelligence space, along with a rush of mergers and acquisitions. At the same time, Musk has built up his own AI company outside Tesla called xAI, which now owns X, his social media platform. This has happened while Tesla's sales growth has vanished and its brand has been damaged by Musk's involvement in the Trump administration. Tesla said Monday that its board of directors formed a special committee earlier this year consisting of chairwoman Robyn Denholm and board member Kathleen Wilson-Thompson in order to sort out a new package. The award they ultimately decided on involves giving Musk 96 million shares that will vest in two years, provided that he "serve continuously in a senior leadership role at Tesla" during that term and holds the stock for five years. Unlike Tesla's previous award to Musk, this new package does not appear to be tied to goals like increasing the company's stock price. At Tesla's Monday pre-market trading price, that would be worth around $29 billion. Musk will have to pay a $23.34-per-share purchase price, bringing the total current value of the award to him to roughly $26.7 billion. Depending on how the Delaware Supreme Court rules on Tesla's appeal, the package may be forfeited so "there cannot be any 'double dip,' according to Tesla. "Elon will not be able to keep this new award in addition to the options he will be awarded under the 2018 CEO Performance Award should the courts rule in our favor," the company wrote. Tesla said Musk and his brother Kimbal, who is also a board member, recused themselves from the process of constructing this new compensation package. Musk's involvement in the 2018 compensation package was one of the reasons why Delaware Chancery Court judge chancellor Kathaleen McCormick decided to strike it down following a trial sparked by a shareholder lawsuit. McCormick said the process of creating that 2018 plan was "deeply flawed" because of Musk's input and his deep connections to the people on Tesla's board. She also criticized that plan for not including any terms that would bind Musk to Tesla for "any set amount of time" -- a likely reason for the two-year pledge included in the new plan. McCormick's decision caused an uproar among Tesla's largest fans and many of its shareholders. It's also what inspired the company to re-incorporate from Delaware to Texas, a state with fewer established shareholder protections written into its laws. Tesla went as far as holding a shareholder vote to "re-affirm" the pay package. But McCormick confirmed her decision in December 2024, saying the vote and Tesla's legal arguments were "unprecedented theories [that] go against multiple strains of settled law."
[3]
Tesla approves share award worth $29 billion to CEO Elon Musk
Aug 4 (Reuters) - Tesla (TSLA.O), opens new tab has granted CEO Elon Musk 96 million shares worth about $29 billion, a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivize Elon to remain at Tesla," the special committee said in the filing. The award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. Tesla shares rose more than 2% in premarket trading. Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva Our Standards: The Thomson Reuters Trust Principles., opens new tab
[4]
Tesla approves 96 million-share award to CEO Elon Musk
Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker.
[5]
Tesla awards boss Elon Musk $29bn in shares
The award should boost Musk's voting power on the electric car company's board. "It is imperative to retain and motivate our extraordinary talent, beginning with Elon", Tesla's board wrote on X, a platform owned by Musk, adding that "no one matches Elon's remarkable combination of leadership experience, technical expertise". The company said the billionaire had a "proven track record" in building "revolutionary and profitable businesses". Tech firms trying to assert themselves in the AI sector have been offering huge sums to workers at rivals in an effort to persuade them to join them and boost their development. Facebook founder Mark Zuckerberg was said to have recently tried to lure top developers from ChatGPT-creator OpenAI with million-dollar pay deals. Meanwhile Microsoft's AI division, headed up by former Google DeepMind co-founder Mustafa Suleyman, recently gained several new hires from Google's ranks. Tesla the company was at an "inflection point" and needed Musk's prowess as it pivots from being an electric vehicle firm to an AI and robotics focussed company. The company added that the share ward would be attractive for Musk "with other "demands on his time and attention". Musk's other roles include executive positions at xAI, Neuralink, and The Boring Company, which makes tunnels and other infrastructure in the US. He recently announced that he was stepping back from politics, after a stint as US President Donald Trump's advisor.
[6]
Tesla board awards Elon Musk $30bn worth of shares
Chief executive will pay $2bn to buy 96m shares at same price as 2018 pay package rescinded by US court Tesla's board has approved awarding $30bn (Β£23bn) worth of shares to its chief executive, Elon Musk, after a US court ruled against a previous pay deal for the world's richest person. Musk will pay $2bn to buy 96m shares in the electric carmaker at the same price as the 10-year pay package agreed in 2018, which is stuck in legal limbo awaiting a court date for an appeal. The award was based on a recommendation from a "special committee" of the board. The announcement in a financial filing was accompanied by a shareholder letter from two members of the committee, the Tesla chair, Robyn Denholm, and Kathleen Wilson-Thompson. It described the award as a "good faith" payment to Musk after the previous pay deal worth $56bn was rescinded in 2024 by a judge in Delaware, where the company was incorporated until June that year. "To recognise what Elon has accomplished and the extraordinary value he delivered to Tesla and our shareholders, we believe we must take action to honour the bargain that was struck in 2018. After all, 'a deal is a deal,'" wrote the directors. They also alluded to Musk's foray into Republican politics, which has damaged the Tesla brand and sales - as well as raising concerns among shareholders. Denholm and Wilson-Thompson said they had reviewed investors' letters and posts on X - the social media network owned by Musk - and acknowledged worries about his focus on his job. "From those communications, we know that one of your top concerns is keeping Elon's energies focused on Tesla. This award is a critical first step toward achieving that goal," they wrote. The award is worth about $30bn based on a share price of $308 in pre-market trading. Musk is worth $350bn, according to the Bloomberg billionaires index. Over the past year, Musk has become embroiled in US politics and a political relationship with Donald Trump that turned toxic once the president entered the White House for the second time, a feat assisted by the Tesla chief executive's financial and personal support. The furore put off left-leaning Tesla buyers inside and outside the US, although stiff competition in the electric car market has also affected sales. A survey from the research firm S&P Global Mobility shared with Reuters showed Tesla's customer loyalty plunged since Musk endorsed Trump. It found 49.9% of Tesla-owning households in the market for a new car bought another Tesla last March. This was just below the industry average, but was down from 73% in June 2024. It edged back up to 57.4% in May this year. Tom Libby, a S&P analyst, said the fall was "unprecedented", adding: "I've never seen this rapid of a decline in such a short period of time." Musk is Tesla's largest shareholder with a 13% stake. The company is shifting its focus to robotaxis and humanoid robots, in a move that positions Tesla more as an artificial intelligence and robotics firm than an automaker. "While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivise Elon to remain at Tesla," wrote the directors. The award is designed to gradually increase Musk's voting power, something he and shareholders had consistently said was key to keeping him focused on Tesla's mission, the directors added. Tesla shares, which have fallen nearly 20% so far this year, rose more than 2% in premarket trading.
[7]
Tesla Approves Share Award Worth $29 Billion to CEO Elon Musk
(Reuters) -Tesla has granted CEO Elon Musk 96 million shares worth about $29 billion, a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivize Elon to remain at Tesla," the special committee said in the filing. The award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. Tesla shares rose more than 2% in premarket trading. (Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva)
[8]
Tesla approves share award worth $29 billion to CEO Elon Musk - The Economic Times
Tesla has granted CEO Elon Musk 96 million shares worth about $29 billion. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker.Tesla has granted CEO Elon Musk 96 million shares worth about $29 billion, a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, the EV maker said the board had formed a special committee to consider some compensation matters involving Musk, without disclosing any details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivize Elon to remain at Tesla," the special committee said in the filing. The award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, it added. Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, it said in the filing. Tesla shares rose more than 2% in premarket trading.
[9]
Tesla Board Grants Elon Musk New $29 Billion Compensation Package Amid Ongoing Legal Battles and Shareholder Support
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. After being forced to work at Tesla without any meaningful compensation, which was the aberrant result of an adverse court ruling, Elon Musk has now received a sizable interim compensation award. For the benefit of those who might not be aware, in January 2024, a Delaware judge voided Elon Musk's $56 billion compensation package from 2018, citing a flawed approval process and excessive influence by Musk over Tesla's board. The ruling also voided Elon Musk's 304 million unexercised stock options, which would have entitled him to around 9 percent of Tesla's 3.2 billion outstanding common shares. Bear in mind the CEO of Tesla currently retains a 13 percent stake in his company. In June 2024, Tesla shareholders voted to reapprove the 2018 compensation package for Elon Musk, with 77 percent of the total votes polled in favor, aiming to bolster Musk's leadership amid the company's expansion into AI and robotics. The CEO of Tesla had openly demanded a 25 percent voting control over Tesla after the Delaware court ruling, to prevent being "overturned" on occassion. As part of its relocation of state of incorporation to Texas, Tesla had agreed to retain legal jurisdiction over the issue of Elon Musk's compensation within Delaware and the court of its Chancery Chief Judge, Kathaleen St. J. McCormick. However, in December 2024, the judge again upheld her initial ruling, stating that the shareholder vote did not rectify the procedural issues. Specifically, the court argued that Tesla and Elon Musk had opted for a re-ratification of the 2018 compensation plan under the section 204 of the Delaware General Corporation Law, which allowed for rectifying corporate acts that were defective due to a "failure of authorization." Critically, the code did not provide for curing breaches of fiduciary duty, which was the entire raison d'Γͺtre cited by the court for nullifying Musk's 2018 pay package. This brings us to today when Tesla's board has just approved a new compensation plan for Elon Musk, granting him 96 million shares valued at approximately $29 billion, with an exercise price of $23.34 per share, aligning with the 2018 award's terms. The new award is structured to gradually increase Musk's voting power, reinforcing his commitment to Tesla's evolving vision. However, do note that Tesla does not currently think that the performance conditions of this new interim plan will be met anytime soon:
[10]
Elon Musk gets $29B pay package from Tesla board to keep him at EV...
Elon Musk was awarded a new $29 billion pay package by Tesla's board on Monday that vests in two years -- a vital move to keep the mogul at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots. The deal, announced in an SEC filing, grants Musk 96 million new shares in Tesla, which has been in a prolonged sales slump that has hurt the company's stock performance this year. Shares rose more than 2% in premarket trading. "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivize Elon to remain at Tesla," members of a special committee formed to consider Musk's pay said in the filing. Last year, a Delaware judge nixed Musk's original stock-based compensation package, which was worth more than $50 billion, after finding it was too excessive and unfair to shareholders. Musk was so incensed by the decision that he moved Tesla's state of incorporation from Delaware to Texas. Musk, who is already the world's richest person with a real-time net worth of $398 billion according to Bloomberg, filed an appeal in March challenging the Delaware judge's ruling. Tesla's special committee said there would be no "double dip" if the original deal is eventually restored. Instead, the $29 billion package will either be voided or offset. The special committee consists of just two members - Tesla chair Robyn Denholm and board director Kathleen Wilson-Thompson. Musk is already Tesla's largest individual shareholder and owns roughly 13% of the company. The announcement removed a key "overhang" on Tesla's shares and should help calm investors with questions about Musk's commitment, according to Wedbush analyst Dan Ives. Musk remains Tesla's big asset and this comp issue has been a constant concern of shareholders once the Delaware soap opera began," Ives wrote in a note to clients. Ives added that it is critical for Tesla's board to "get this long-term compensation strategy in place prior to the company's November 6th shareholder meeting which would address the elephant in the room." According to the deal's terms, Musk's new shares will only vest if he remains a key executive at Tesla through at least 2027. The shares also come with a five-year lockup, with Musk only able to sell to cover tax payments. Critics have long alleged that Musk is overpaid compared to other Big Tech CEOs, such as Microsoft's Satya Nadella and Google's Sundar Pichai, who have led their companies to share price growth without monster pay packages. Just a few executives have secured deals worth $1 billion or more annually in recent years, according to the Wall Street Journal. That includes Palantir boss Alexander Karp, who earned more than $6 billion last year, and Hock Tan of chip maker Broadcom, who earned $1.15 billion. Musk will need to redouble efforts to lead a turnaround at Tesla. Analysts have pointed to Tesla's aging car lineup and increased competition from Chinese automakers like BYD as key obstacles for the company. Musk's political adventures, including his work with the Department of Government Efficiency and public clashes with President Trump, have also worried stockholders. The Tesla CEO has cited AI initiatives, such as Tesla's self-driving Robotaxis and Optimus humanoid robots, as central to its long-term business strategy.
[11]
Tesla approves share award worth $29 billion to CEO Elon Musk
(Reuters) -Tesla has granted 96 million new shares worth about $29 billion to CEO Elon Musk, a move aimed at keeping the billionaire entrepreneur at the helm as he fights a court ruling that voided his original pay deal for being unfair to shareholders. In 2024, a Delaware court voided Musk's 2018 compensation package, valued at over $50 billion, citing that the Tesla board's approval process was flawed and unfair to shareholders. Musk kicked off an appeal in March against the order, claiming a lower court judge made multiple legal errors in rescinding the record compensation. Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details. Tesla is at a turning point as Musk, its largest shareholder with a 13% stake, shifts focus from a promised affordable EV platform to robotaxis and humanoid robots, positioning the company more as an AI and robotics firm than an automaker. The new award is designed to gradually boost Musk's voting power, something he and shareholders have consistently said was key to keeping him focused on Tesla's mission, the special committee said in the filing. "While we recognize Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging ... we are confident that this award will incentivize Elon to remain at Tesla," the committee said in a regulatory filing on Monday. It added that if the Delaware courts fully reinstate the 2018 CEO Performance Award, the new interim grant will either be forfeited or offset and there will be no "double dip," it added. The interim award shares vest only if Musk remains in a key executive role through 2027. They also come with a five-year holding period except to cover tax payments or the purchase price. Musk must pay Tesla $23.34 per share of restricted stock that vests, which is equal to the exercise price per share of the 2018 CEO Award, the company said in Monday's filing. Tesla shares rose more than 2% in premarket trading. FALLING SALES The stock has lost about a quarter of its value so far this year as the company grapples with a decline in sales wrought by its aging vehicle line-up, tough competition and Musk's political stances that have alienated some potential buyers. The challenges have been worsened by U.S. government cuts in support for EVs, with Musk saying at a post-earnings call last month that the waning subsidies could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year. Data from research firm S&P Global Mobility shared exclusively with Reuters on Monday showed that Tesla's brand loyalty had plunged since Musk endorsed U.S. President Donald Trump last summer. Tesla's aging lineup also faces stiffer competition from an array of EVs from legacy automakers, including General Motors, Hyundai and BMW. Cybertruck, the only new model Tesla has released since 2020, has proved to be a flop despite Musk's prediction of hundreds of thousands of annual sales. (Reporting by Aditya Soni in Bengaluru; Editing by Anil D'Silva)
Share
Copy Link
Tesla's board has approved a new $29 billion compensation package for CEO Elon Musk, citing the need to retain top talent in the intensifying AI industry competition. This move comes as Tesla positions itself as an AI and robotics company, shifting focus from its traditional electric vehicle business.
Tesla has made a significant move in the ongoing artificial intelligence (AI) talent war by approving a new compensation package for CEO Elon Musk, worth approximately $29 billion in shares 1. This decision comes as the company positions itself at a "critical inflection point," shifting its focus from being primarily an electric vehicle manufacturer to an AI and robotics firm 2.
Source: Economic Times
The new award involves granting Musk 96 million shares that will vest over two years, provided he "serve continuously in a senior leadership role at Tesla" during that period and holds the stock for five years 1. Unlike Musk's previous compensation plan, this package is not tied to specific performance goals such as increasing the company's stock price 2. Musk will be required to pay a $23.34-per-share purchase price, bringing the total current value of the award to approximately $26.7 billion 3.
This new package comes in the wake of a Delaware court's decision in January 2024 to void Musk's 2018 compensation package, which was valued at over $50 billion 3. The court cited flaws in the board's approval process and unfairness to shareholders as reasons for striking down the previous deal 4. Musk has appealed this decision, and the new package will be forfeited if the Delaware Supreme Court overturns the lower court's ruling 1.
Tesla's board emphasized the importance of retaining Musk's leadership as the company pivots towards AI and robotics. "It is imperative to retain and motivate our extraordinary talent, beginning with Elon," the board stated 5. This shift in focus includes the development of robotaxis and humanoid robots, positioning Tesla more as an AI and robotics firm than a traditional automaker 3.
Source: CNBC
The tech industry is experiencing an intense competition for AI talent, with companies offering substantial compensation packages to attract and retain top developers. For instance, Facebook founder Mark Zuckerberg reportedly attempted to lure developers from OpenAI with million-dollar pay deals 5. Similarly, Microsoft's AI division, led by former Google DeepMind co-founder Mustafa Suleyman, has recently recruited several employees from Google 5.
This new compensation package is designed to gradually boost Musk's voting power, which both Musk and shareholders have indicated is crucial for maintaining his focus on Tesla's mission 3. The company views Musk's leadership as essential for navigating the transition from a traditional electric vehicle manufacturer to a leader in AI and robotics 2.
Source: Wccftech
While the new package has been approved by Tesla's board, it remains subject to potential scrutiny. The company plans to put "a longer-term CEO compensation strategy" to a vote at the annual shareholder meeting scheduled for November 2. Additionally, Tesla has re-incorporated from Delaware to Texas, a state with fewer established shareholder protections, following the legal challenges to Musk's previous compensation package 1.
Summarized by
Navi
Apple is reportedly working on an AI-powered 'answer engine' to compete with ChatGPT and Google's Gemini, signaling a shift in the company's AI strategy.
17 Sources
Technology
22 hrs ago
17 Sources
Technology
22 hrs ago
Generative AI tools like ChatGPT are reducing traffic to news websites by providing direct summaries, threatening media revenue models and forcing publishers to adapt or risk obsolescence.
4 Sources
Technology
6 hrs ago
4 Sources
Technology
6 hrs ago
Demis Hassabis, CEO of Google DeepMind, discusses the rapid advancement of AI, its potential to transform society, and the challenges it presents.
2 Sources
Technology
14 hrs ago
2 Sources
Technology
14 hrs ago
CrowdStrike reports a 220% increase in North Korean IT worker infiltrations, with AI being used to create fake identities and pass job interviews, raising concerns about sanctions evasion and cybersecurity.
2 Sources
Technology
6 hrs ago
2 Sources
Technology
6 hrs ago
Bharti Airtel's digital subsidiary Xtelify unveils Airtel Cloud, a sovereign telco-grade cloud platform, alongside an AI-powered software suite aimed at revolutionizing telecom operations globally.
8 Sources
Technology
6 hrs ago
8 Sources
Technology
6 hrs ago