Tesla proposes record $1 trillion compensation for CEO Elon Musk
What's the story
Tesla has proposed a new compensation plan for its CEO, Elon Musk. The package, worth nearly $1 trillion, is unprecedented in corporate America. The deal is designed to keep Musk at the helm of Tesla for years to come. However, it comes with ambitious targets that he would have to meet in order to earn the full payout.
Growth benchmarks
Musk's stake in Tesla to increase to at least 25%
The new compensation plan sets several ambitious benchmarks for Musk. These include the expansion of Tesla's robotaxi business and increasing the company's market value from around $1 trillion today to at least $8.5 trillion. If he meets these targets, Musk could get additional shares, increasing his stake in the electric vehicle maker to at least 25%.
Previous compensation
Delaware court overturned previous $50 billion package
The new compensation plan comes after a Delaware court overturned Musk's previous package, which was worth over $50 billion. While Tesla appeals that decision, the board is looking for other ways to compensate its CEO. This includes an interim stock award worth around $30 billion in early August. The new incentives are aimed at keeping Musk focused on Tesla's growth in emerging markets like robotics and artificial intelligence.
Corporate control
Musk's commitment to Tesla amid other responsibilities
The new agreement highlights Musk's stronghold on the automaker, despite his other commitments. He has been Tesla's top executive since 2008 and also runs four other companies: SpaceX, xAI, Neuralink, and The Boring Company. In a May interview with Bloomberg, Musk had said he intends to remain at the helm of Tesla for five more years.