Tesla CFO Vaibhav Taneja Receives Record $139 Million Pay, Surpassing Most CEOs, Even As Elon Musk Faces Compensation Lawsuit

Tesla Inc. (NASDAQ:TSLA) finance chief, Vaibhav Taneja, has received a record-breaking compensation of $139 million in 2024, outpacing most CEOs and setting a new benchmark for CFOs.

What Happened: Taneja’s compensation package is the highest ever awarded to a CFO since modern disclosure standards began in 2006, exceeding the $86 million granted to Nikola’s CFO in 2020. Notably, Nikola has since filed for bankruptcy, reported The Wall Street Journal on Tuesday. According to Equilar, that's also more than what most CEOs earn.

Taneja's compensation was primarily linked to stock options and equity grants awarded in October 2024, after his promotion to CFO in August 2023. The 47-year-old has been part of Tesla since 2017, holding several financial leadership positions.

The CFO received the award amid mixed Tesla’s performance: its stock surged after President Trump’s election, but global vehicle deliveries dropped for the first time in over a decade. In Q1, deliveries declined 13% and net profit plummeted 71%.

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Why It Matters: Taneja’s record-breaking compensation comes at a time when Tesla’s financial performance has been under scrutiny. The company’s co-founder and CEO, Elon Musk, is currently appealing a court decision that overturned his $56 billion payout, arguing that it significantly contributed to Tesla’s growth.

Notably, Tesla Inc. has amended its corporate bylaws to deter future shareholder lawsuits like the one that blocked Musk's record pay package. As of May 15, investors must own at least 3% of Tesla's shares to initiate or maintain a derivative lawsuit, according to a regulatory filing disclosed late Friday.

Furthermore, Taneja’s compensation surpasses that of the highest-paid CEO in America in 2024, Jim Anderson of Coherent Corp. (NYSE:COHR), who received a $101.5 million package. This prompts discussion about the sustainability of high compensation packages, particularly given Tesla’s recent financial performance.

Tesla stock lost 2.25% to close at $342.09 on Monday. Over the past month, it gained 50.37%, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.