Tesla Proposes $1 Trillion Compensation Package for Elon Musk
WILMINGTON, DE – Tesla Inc. has unveiled a proposed compensation package for CEO Elon Musk possibly reaching $1 trillion, a landmark agreement unprecedented in corporate history. The plan,submitted in filings Friday,aims to incentivize Musk’s continued leadership of the electric vehicle manufacturer over the next decade.
The proposal centers on a series of enterprising performance goals, including the successful expansion of Tesla’s robotic taxi business and increasing the company’s market capitalization to at least $8.5 trillion. Achieving these targets would grant Musk additional shares, increasing his ownership stake in Tesla to a minimum of 25% – a level he has publicly expressed a desire to reach.
This new plan comes as Tesla appeals a Delaware court’s decision to invalidate Musk’s 2018 compensation package, estimated at over $50 billion. The board has already issued an interim share award in early August valued at approximately $30 billion.
The proposed agreement seeks to align Musk’s interests with long-term growth, especially in emerging areas like robotics and artificial intelligence. Documents filed Friday also included a non-binding shareholder proposal to acquire a stake in Musk’s AI startup, XAI.Despite the demanding requirements, the plan reinforces Musk’s significant control over Tesla, where he has served as CEO since 2008. He currently leads four other companies – spacex,XAI,Neuralink,and Boring Co.- and stated in a May Bloomberg interview his commitment to leading Tesla for at least another five years.
As of Thursday, Tesla shares had declined 16% year-to-date.
