Tesla Proposes $1 Trillion Pay Package for Elon Musk
▼ Summary
– Tesla has proposed a new 10-year compensation plan for CEO Elon Musk that could be worth up to $1 trillion as the company shifts focus toward humanoid robotics and AI.
– The plan ties Musk’s compensation to increasing Tesla’s valuation from $1 trillion to over $8 trillion and would grant him over 423 million additional shares, boosting his control to around 25%.
– Shareholders will vote on the proposal at Tesla’s upcoming annual meeting, following a previous $29 billion compensation package that was recently struck down by a judge.
– Tesla claims the world is at a “critical inflection point” and that it can usher in an era of “sustainable abundance” through innovative and affordable technologies at scale.
– The company asserts that Musk’s “singular vision” is vital to navigating this period, citing the “Master Plan Part IV” which he unveiled but barely acknowledged.
Tesla has put forward an ambitious new compensation proposal for CEO Elon Musk that could ultimately be valued at up to $1 trillion, linking his future earnings directly to the company’s ability to achieve unprecedented growth over the next decade. This comes at a time when Tesla is expanding its focus beyond electric vehicles into areas like humanoid robotics and artificial intelligence, even as its core automotive business faces challenges.
The proposed pay package is structured around a series of demanding performance milestones, most notably increasing Tesla’s market valuation from its current level near $1 trillion to more than $8 trillion. Should these targets be met, Musk would receive over 423 million additional shares, raising his ownership stake to approximately 25% and significantly strengthening his influence over corporate decisions. This move follows earlier statements from Musk indicating he might reduce his involvement with Tesla if not granted greater voting control.
Shareholders will have the opportunity to vote on this landmark proposal during Tesla’s upcoming annual meeting later this year. The announcement arrives just weeks after the company disclosed a separate $29 billion compensation package intended to replace a previous award invalidated by a Delaware court.
In regulatory filings, Tesla emphasized that the world stands at a pivotal moment, and the company aims to lead the transition toward what it describes as an era of “sustainable abundance.” Central to this vision is the large-scale deployment of innovative and affordable technologies, including autonomous systems and AI-driven solutions.
Tesla credited Musk’s “singular vision” as essential for steering the company through this transformational period, referencing its recently published “Master Plan Part IV.” Although Musk himself offered only limited public commentary on the plan, acknowledging its lack of specifics, the company insists that his strategic direction remains indispensable to its long-term ambitions.
(Source: TechCrunch)
