Tesla Inc (NASDAQ:TSLA) has granted chief executive Elon Musk a new pay package of 96 million shares, worth about $29 billion, as it seeks to secure his leadership after a court overturned his original record-setting deal.
The award is structured to gradually increase Musk’s voting power and keep him focused on Tesla’s long-term strategy, Reuters reported.
Tesla shares rose over 2% in premarket trading following the announcement.
Earlier this year, a Delaware judge voided Musk’s previous $50 billion compensation plan, ruling the process was unfair to shareholders. Musk has appealed, arguing the decision was based on legal errors.
Tesla’s board said the new package aims to “incentivize Elon to remain at Tesla” at a time when the company is shifting its focus from affordable electric vehicles to artificial intelligence and robotics projects.
Musk, already Tesla’s largest shareholder, must pay $23.34 for each restricted share as they vest, matching the terms of the 2018 award.