Tesla Board Proposes Landmark Compensation Package for Elon Musk, Paving Way for Potential Trillionaire Status
Tesla Board Proposes Landmark Compensation Package for Elon Musk, Paving Way for Potential Trillionaire Status
Tesla’s board has put forward an extraordinary compensation package for CEO Elon Musk, which, if approved by shareholders and rigorous company benchmarks are met, could see his wealth soar past $1 trillion. This proposed agreement, detailed in a recent securities filing, aims to incentivize Musk over the next decade, making him the highest-compensated CEO in history with an estimated $900 billion payout.
The ambitious plan is contingent on Tesla achieving a staggering $8.5 trillion market valuation—a figure that surpasses the combined market caps of tech giants Meta, Microsoft, and Alphabet. Beyond financial targets, the package also includes operational goals such as deploying one million Robotaxis and delivering one million humanoid robots within the next ten years.
This new proposal comes as Musk’s previous $50 billion pay package from 2018 remains embroiled in legal challenges, having been struck down twice by a Delaware judge last year due to concerns over board independence and negotiation influence. Board members Robyn Denholm and Kathleen Wilson-Thompson emphasized that the new long-term performance award is crucial to retain Musk’s focus and leadership during a pivotal period for Tesla, aligning his performance directly with the company’s financial success and shareholder returns. Analysts like Seth Goldstein of Morningstar concur, noting the plan’s potential to remove a key near-term risk should Musk consider departing Tesla and to increase his ownership stake, a long-held objective.
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