Tesla Board Forms Special Committee to Review Elon Musk’s Pay: Report

Tesla’s board has reportedly created a special committee to explore a new pay deal for CEO Elon Musk, according to people familiar with the matter cited by the Financial Times.

The move comes after a Delaware court struck down Musk’s record-breaking 2018 stock award, leaving uncertainty over his future at the company.

The committee, which reportedly consists of chair Robyn Denholm and director Kathleen Wilson-Thompson, is reviewing whether to propose a fresh stock package or other forms of compensation if the Delaware Supreme Court does not reinstate the original deal. The original package, once worth up to $146 billion, was ruled excessive by a judge in January 2024.

The Financial Times says Tesla has delayed its annual proxy filing, potentially postponing its shareholder meeting to allow the committee more time. The company’s major investors have reportedly been contacted for their views on Musk’s leadership and pay.

The committee is still in early discussions, and no decision has been made. Any future stock award would depend on financial, operational, and stock performance targets, the report said.