On May 1 this column reported on the $2.6 billion stock option granted earlier this year by Tesla, Inc., to its chairman and CEO, Elon Musk, representing 12 percent of Tesla shares outstanding on the option grant date (the “Musk Option”). Musk is one of the founders of Tesla, as described in Tesla’s proxy statements.

Today’s column compares Musk’s ownership and certain of his arrangements at Tesla with those of “Founder CEOs” at 10 other high-tech companies. “Founder CEOs” are CEOs (or, in two cases, executive chairmen who had previously served as CEO) who founded or co-founded the enterprise. The column also comments on legal aspects of the award under Delaware law. Finally, it discusses briefly the stockholder class action derivative complaint regarding the Musk Option filed under seal on June 5 (a redacted version was made public on June 7) in the Delaware Chancery Court, against Tesla directors including Musk and Tesla as nominal defendant. Tornetta v. Musk et al, No. 2018-0408.

Musk’s Stock Ownership and Pay Compared to Other Founder CEOs

  1.   Comparator Companies