Tesla offers Musk record $1T pay package
Tesla’s board has proposed a 10-year compensation plan for CEO Elon Musk, worth up to $1T if ambitious growth and robotaxi targets are met.
The 10-year plan sets out several ambitious goals: raising Tesla’s market capitalization from the current $1.1T to at least $8.5T, deploying one million robotaxis, producing 20 million vehicles, and delivering one million Optimus robots.
If Musk meets all conditions, his stake in the company would rise to 25%, something he has sought for years. He currently controls about 13% of shares after selling part of his stake to buy Twitter.
The new proposal follows a Delaware court ruling that voided Musk’s 2018 $50B package over approval conflicts. While Musk appeals that decision, Tesla has been seeking ways to retain him, including a $30B interim stock award in August.
In a letter to shareholders, Tesla’s leadership said that “retaining and motivating Elon is key to making the company the most valuable in history.”
Following the news, Tesla shares rose 3.2% in New York, though they remain down 16% year-to-date.
If Musk meets all conditions, his stake in the company would rise to 25%, something he has sought for years. He currently controls about 13% of shares after selling part of his stake to buy Twitter.
The new proposal follows a Delaware court ruling that voided Musk’s 2018 $50B package over approval conflicts. While Musk appeals that decision, Tesla has been seeking ways to retain him, including a $30B interim stock award in August.
In a letter to shareholders, Tesla’s leadership said that “retaining and motivating Elon is key to making the company the most valuable in history.”
Following the news, Tesla shares rose 3.2% in New York, though they remain down 16% year-to-date.
Tesla stock price over the past 6 months. Source: google.com
If the program succeeds, Musk’s total wealth tied to Tesla would exceed $2T, bringing him closer to becoming the world’s first trillionaire.
