Tesla's Board Approves New $30B Pay Package for Elon Musk Amid Legal Battle

Tesla Inc. (NASDAQ:TSLA) is one of the most profitable growth stocks to buy according to billionaires. On August 4, Tesla’s board of directors awarded CEO Elon Musk an interim compensation package worth ~$30 billion. The package consists of 96 million restricted shares, which Musk is required to hold for 5 years. A key condition for the shares to vest is that he must remain an executive at Tesla for at least 2 years.

The award is a demonstration of faith and is intended to keep Musk focused on the company amid growing concerns about his commitment and a contentious legal battle over a previous compensation package. The new deal comes as a result of a legal battle over Musk’s 2018 compensation package, which would have granted him $55.8 billion in Tesla shares.

A Delaware court had previously ruled that the 2018 package was approved through an unfair process. Although shareholders voted last year to restore the package, the matter is currently pending before the Delaware Supreme Court. If Musk wins the legal battle for the 2018 package, the new deal announced on August 4 will be nullified.

Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation & storage systems in the US, China, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.