Tesla’s board of directors has accumulated over $3 billion in compensation through stock awards between 2004 and 2024—a figure that far outpaces compensation practices at other major U.S. technology companies.
An analysis conducted for Reuters by governance and compensation specialist Equilar shows Tesla’s board members benefited disproportionately from early stock‑option grants that multiplied in value as the company’s share price soared.
Directors such as Kimbal Musk, Ira Ehrenpreis, and chair Robyn Denholm each realized hundreds of millions in stock‑based gains, with Denholm cashing out approximately $595 million.
Despite suspending director compensation in 2021 following a shareholder lawsuit, Tesla’s board still averaged about $1.7 million annually per director between 2018 and 2024—significantly above peers like Meta and Amazon.
The structure of these awards—largely stock options rather than direct share grants—has drawn scrutiny from corporate‑governance experts. Options amplify upside without downside risk, tying director pay closely to stock performance but potentially misaligning incentives with shareholder interests and undermining board independence.
Critics argue that compensation this outsized can discourage critical oversight, especially when directors’ wealth is heavily tied to the company’s stock.
Tesla defends its approach, asserting that director pay is performance‑based and reflects the significant time and effort required in governance roles, including an above‑normal frequency of board and committee meetings.
Still, the discussion underscores broader tensions in board compensation norms as high‑growth companies balance talent retention with accountability.
