An analysis by Equilar, a compensation and corporate governance research firm, indicates that Tesla board members have earned over $3 billion from stock awards, far exceeding the earnings of directors at other major U.S. tech companies during the same period. For instance, Musk's brother, Kimbal, has earned nearly $1 billion since 2004. Although Tesla has not granted new stock awards since 2020 and suspended director compensation in 2021 to resolve shareholder lawsuits, the average cash and stock compensation for Tesla directors from 2018 to 2020 was still about eight times that of Alphabet. Even when accounting for the compensation suspension period from 2021 to 2024, the average compensation for Tesla directors from 2018 to 2024 remained 2.5 times that of Meta. Additionally, Tesla's practice of compensating its board with stock options has drawn criticism from some experts, as this form of compensation carries no downside risk but amplifies gains. A Tesla spokesperson responded by stating that director compensation is closely tied to stock performance and shareholder value, and that directors provide exceptional service and dedication, with meeting frequencies far exceeding the industry average.
