Tesla Board Earned $3B From Stock Awards, Outpacing Tech Rivals

Tesla Board Stock Awards Surpass $3 Billion, Analysis Finds

Tesla’s board of directors has generated more than $3 billion in gains from stock awards, significantly exceeding compensation levels seen at other major U.S. technology companies, according to an analysis conducted by compensation and corporate governance firm Equilar for Reuters.

The review highlights how Tesla directors benefited from long-term appreciation of equity awards granted years earlier, even though the board has not approved new director stock grants since 2020.

Among the most notable beneficiaries is Kimbal Musk, the brother of Tesla CEO Elon Musk. Since joining the board in 2004, Kimbal Musk has earned nearly $1 billion, based on the appreciated value of stock options he has held or sold over time.

Other board members also recorded substantial gains:

• Ira Ehrenpreis, a director since 2007, accumulated approximately $869 million

• Robyn Denholm, Tesla’s board chair since 2014, earned about $650 million

Equilar’s analysis indicates that the value of Tesla’s director stock awards far exceeded peer benchmarks at the time they were issued, placing Tesla well outside typical compensation norms within the technology sector.

Despite these large payouts, Tesla’s board agreed in 2021 to suspend director compensation as part of a settlement resolving a shareholder lawsuit. The lawsuit alleged that board-member pay was excessive and not aligned with shareholder interests.

The findings reignite broader debates around corporate governance, board independence, and executive oversight, particularly at companies where founders or related parties maintain significant influence.

As investors continue to scrutinize compensation practices across Silicon Valley, Tesla’s board compensation history stands out as one of the most lucrative — and controversial — among U.S. public companies.