Elon Musk, the CEO of Tesla, could receive a pay package exceeding $1 trillion (£740 billion) contingent on achieving a series of ambitious objectives over the next decade, as proposed by the company’s board. This plan does not involve a traditional salary or bonus; instead, it is tied to substantial increases in Tesla’s market value and various operational targets.
To qualify for this extensive compensation, Musk would need to amplify Tesla’s earnings figures by 24 times, deploy one million robotaxis, sell a million AI robots, and deliver an additional 12 million Tesla cars. Tesla’s board has encouraged investors to endorse this pay structure.
Tesla Board Chair Robyn Denholm stated that innovative ideas and advanced technology could facilitate growth that may currently appear unattainable. She emphasized the importance of retaining Musk as essential for Tesla to realize its goals and achieve significant market valuation.
This new proposal follows Musk receiving $29 billion in shares last month, a portion of a earlier $50 billion award that was invalidated by a U.S. court for being potentially unfair to shareholders. The current compensation plan would allocate shares to Musk in 12 increments, based on meeting specific market and operational milestones, with the first milestone set at reaching a market value of $2 trillion.
Some analysts have expressed skepticism about the proposed package. Dan Coatsworth, an investment analyst at AJ Bell, questioned the justification for such compensation and noted concerns about Tesla’s competitive position and Musk’s external distractions affecting the company’s reputation.
This proposal arrives in the context of recent reports, which Tesla denied, about the board considering Musk’s replacement due to concerns over his focus and the company’s declining share price.
Source: https://www.bbc.com/news/articles/cdx29qv4nvvo?at_medium=RSS&at_campaign=rss