Elon Musk’s multibillion-dollar pay is under spotlight as Tesla’s (TSLA) board is reportedly considering a new compensation package for its high-profile CEO. According to media reports, a special committee, which includes chairman Robyn Denholm and board member Kathleen Wilson-Thompson, is now reviewing a potential stock-based package deal. The outcome could reshape not only Musk’s future at Tesla but also set the tone for executive pay across the corporate world.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Tesla Launches New Compensation Committee
The latest report stated that Tesla mentioned the launch of a special committee in a filing last month. Since then, Tesla has received feedback from several major investors. These shareholders have voiced their views on Musk’s compensation and his continued leadership at the company.
Meanwhile, the committee is still in the early stages of discussion, and there’s no guarantee of a new pay package or how Musk’s compensation will be structured, according to sources. Any stock options would depend on Tesla meeting specific financial, operational, and share price targets.
Musk’s Mega Deal 2.0
With these new discussions, Tesla’s board is also looking into other ways to reward him for his past work. This is to ensure, just in case, the company can’t bring back his massive 2018 compensation plan, which is currently being appealed in the Delaware Supreme Court.
For context, a Delaware court struck down Musk’s 2018 pay deal in an initial ruling in 2024. The judge deemed the pay package excessive and criticized Tesla’s board for being too closely aligned with Musk, describing them as “servants” to him. In March 2025, Musk officially launched his appeal to restore the compensation package.
Notably, Musk’s 2018 pay package included 304 million stock options, initially worth $56 billion in 2024. The value peaked at $146 billion in December and is currently worth $98 billion based on the current share price. If the package is reinstated by Delaware’s Supreme Court, Musk’s ownership in Tesla would rise from just under 13% to over 20%.
Is Tesla a Good Share to Buy?
As Tesla navigates the review of Musk’s compensation, Wall Street analysts are also closely watching the company’s stock performance.
According to TipRanks’ consensus, TSLA stock has received a Hold consensus rating, with 16 Buys, 10 Holds, and 11 Sells assigned in the last three months. The average Tesla share price target is $284.23, implying a downside of 15% from current levels.
