Elon Musk is on the verge of potentially becoming the world’s first trillionaire, contingent upon the approval of a new compensation package by Tesla shareholders. The proposed pay structure hinges on Musk meeting specific milestones, including the production of one million robotaxis and humanoid robots, as well as significantly increasing Tesla’s valuation.
The compensation package being proposed builds on a previous award worth $29 billion that was introduced last month, contributing to an overall package that could reach approximately $975 billion at its maximum payout. This new package would also increase Musk’s control over the company, aligning with his vision for AI-powered vehicles.
In the past, Tesla attempted to implement an extensive pay package for Musk, valued at over $50 billion in 2018. However, legal challenges arose, and a Delaware court ruled the deal flawed, leading to its voiding. Although shareholders voted to approve the package multiple times, the court’s ruling has prompted Tesla to appeal to the Delaware Supreme Court.
Currently, Tesla is urging shareholders to approve this new reward, emphasizing its position at the forefront of AI and robotics, which the company believes necessitates Musk’s focused leadership. Board Chair Robyn Denholm supported this view, stating that Musk’s vision is vital during what they describe as a critical transition period.
To receive this potential payout, Musk must serve as CEO for at least seven years and achieve the outlined production and valuation goals. In response to concerns about his control of the company, Musk expressed hope that a balance could be struck to maintain accountability while ensuring that his vision is executed effectively. Musk, a significant shareholder with a 13% stake, seeks more control to align the company’s direction with his ambitions.
Source: https://www.theverge.com/news/772508/tesla-elon-musk-trillion-pay-package-robot