The share-based compensation assumes that Elon Musk remains as CEO until August 3, 2027, reports Bloomberg. In a statement, Tesla's board of directors writes that it is "more important than ever before to retain Elon Musk".
Elon Musk has previously threatened to leave the company if he does not receive more shares.
Tesla's share has however fallen 25 percent this year in the shadow of CEO Elon Musk's many political statements. The share rises by 2 percent in American pre-trading after the announcement of his approved billion-compensation.
