In a move that could redefine executive pay, Tesla's board of directors has proposed an unprecedented compensation package for CEO Elon Musk, potentially worth up to $1 trillion over the next decade. This extraordinary offer, which will be put to a shareholder vote on November 6, 2025, is designed to lock in Musk's long-term commitment to the company and incentivize a new phase of massive growth.
The All-Stock, Performance-Based Deal
The proposed pay package is entirely composed of Tesla stock awards and has no salary or cash bonus component. It is structured around a series of highly ambitious "Mars-shot" milestones that Musk must achieve for the company to receive any portion of the payout. The plan is divided into 12 tranches, with each tranche tied to a set of operational and financial targets. If all of these goals are met, Musk's stake in Tesla could more than double, pushing his total ownership to over 25% and potentially making him the world's first trillionaire.
The targets are eye-watering in their scope, including:
Boosting Tesla's market capitalization from its current approximate value of $1.1 trillion to $8.5 trillion.
Expanding annual vehicle deliveries to 20 million units.
Deploying 1 million autonomous "robotaxis."
Manufacturing and delivering 1 million humanoid robots (Optimus).
Musk must remain at Tesla for at least 7.5 years to vest any of the shares and 10 years to receive the full payout.
A Controversial Gamble
The proposal comes at a critical time for Tesla, which has faced headwinds from stiff competition and a slowdown in electric vehicle sales. The company's board has framed the package as a necessary measure to ensure Musk's full attention as Tesla pivots its focus toward artificial intelligence (AI) and robotics. Critics, however, have voiced concerns about the sheer scale of the compensation, arguing it could lead to significant shareholder dilution and sets a dangerous precedent for corporate governance.
The debate is further fueled by the legal saga surrounding Musk's previous 2018 pay package, which a Delaware court has twice nullified. This new proposal, while similar in its performance-based structure, is an attempt to create a legally robust and compelling incentive to retain Tesla's visionary leader.
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