Elon Musk purchases $1 billion in Tesla stock, his first open-market purchase since 5 years
Tesla CEO Elon Musk has purchased nearly $1 billion worth of EV maker’s shares, reports Bloomberg citing a filing with the Securities and Exchange Commission (SEC). As per the filing, the tech billionaire bought the stock indirectly through a trust on September 12. This marked Musk’s first open-market purchase of the stock since February 2020, with about 2.57 million shares bought. After the development, the company’s shares increased by around 7.3% before the start of regular trading.
Notably, the stock purchases coincided with Tesla’s board of directors chairman Robyn Denholm defended Musk’s $1 trillion pay package saying the compensation should depend on his ability to achieve ‘seemingly impossible goals.’
Elon Musk’s new pay package
Last month, the Tesla board proposed a $1 trillion compensation plan for CEO Elon Musk. The newly proposed award is roughly 18 times the size of the 2018 pay package.
In a filing with the US SEC, the company said that “traditional compensation packages granted to executives at other companies were determined to not be appropriate for designing Mr. Musk’s incentive compensation.”
Notably, the new pay package comes with a condition – 10 million active FSD subscriptions for Tesla and 1 million Tesla robotaxis on the road. FSD, as explained in the SEC filing “means an advanced driving system, regardless of the marketing name used, that is capable of performing transportation tasks that provide autonomous or similar functionality under specified driving conditions”.
Pope Leo on Elon Musk’s $1 trillion pay package proposal
In a recent interview published by Crux last week, Pope Leo said such outsized compensation highlights the widening gap between workers and corporate executives.
“Yesterday the news that Elon Musk is going to be the first trillionaire in the world. What does that mean and what's that about?” Pope Leo said. “
The Chicago-born linked Musk’s pay deal to growing polarization in both society and the Catholic Church. “CEOs that 60 years ago might have been making four to six times more than what the workers are receiving … 600 times more (now),” he said. He warned that if money alone defines value, “then we’re in big trouble.”
Notably, the stock purchases coincided with Tesla’s board of directors chairman Robyn Denholm defended Musk’s $1 trillion pay package saying the compensation should depend on his ability to achieve ‘seemingly impossible goals.’
Elon Musk’s new pay package
Last month, the Tesla board proposed a $1 trillion compensation plan for CEO Elon Musk. The newly proposed award is roughly 18 times the size of the 2018 pay package.
In a filing with the US SEC, the company said that “traditional compensation packages granted to executives at other companies were determined to not be appropriate for designing Mr. Musk’s incentive compensation.”
Notably, the new pay package comes with a condition – 10 million active FSD subscriptions for Tesla and 1 million Tesla robotaxis on the road. FSD, as explained in the SEC filing “means an advanced driving system, regardless of the marketing name used, that is capable of performing transportation tasks that provide autonomous or similar functionality under specified driving conditions”.
Pope Leo on Elon Musk’s $1 trillion pay package proposal
In a recent interview published by Crux last week, Pope Leo said such outsized compensation highlights the widening gap between workers and corporate executives.
“Yesterday the news that Elon Musk is going to be the first trillionaire in the world. What does that mean and what's that about?” Pope Leo said. “
The Chicago-born linked Musk’s pay deal to growing polarization in both society and the Catholic Church. “CEOs that 60 years ago might have been making four to six times more than what the workers are receiving … 600 times more (now),” he said. He warned that if money alone defines value, “then we’re in big trouble.”
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