Elon Musk’s Tesla Pay Package May See Overhaul As Board Reportedly Forms Special Review Committee

Elon Musk’s pay is reportedly being reassessed by a specially appointed Tesla (TSLA) committee, which could propose a fresh options grant to settle doubts about his long‑term role.

According to a report by the Financial Times, the committee is still in the early stages of discussion, with no final details on the new package or any decisions on how Musk’s new pay will be structured.

It added that any stock options offered to Musk would be contingent on Tesla hitting financial, operational, and share price targets. 

This comes after institutional investors reached out to the board last month, questioning Musk’s commitment to Tesla and urging the directors to provide clarity on executive compensation and steps being taken to restore investor confidence ahead of the month’s earnings report.

Pressure has mounted on the company after its 10-Q filing revealed that a special committee had been formed to “consider certain compensation matters involving Mr.Musk.”

There has also been speculation that Tesla is searching for a new CEO to replace Musk, claims that both Musk and other board members have denied.

Tesla’s compensation to Elon Musk in 2018—the largest pay award in U.S. history—has been under scrutiny for nearly seven years. In January 2024, a Delaware judge denied it and ruled that the amount was excessive and that the board members had acted in favour of Musk, “like supine servants of an overweening master.”

In early 2024, Musk threatened to leave Tesla unless he was given greater control over the company. 

The Financial Times report also added that the potential delay in Tesla’s annual meeting, which usually occurs in May or June, is to allow the committee time to form new pay proposals for shareholders to vote on.

According to Forbes, Elon Musk’s net worth currently stands at $342 billion, making him the richest man in the world.

Tesla’s stock was up nearly 3% in pre-market trade on Wednesday, after gaining nearly 5% in the previous session. The shares are on the verge of their best winning streak in nearly two weeks, as broader market sentiment has improved with the U.S. progressing on tariff deals.

So far this year, Tesla’s stock is down more than 14%, but has gained around 96.5% in the past 12 months. 

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