Tesla Proposes Trillion-Dollar Pay Package for CEO Elon Musk
Elon Musk, the CEO of Tesla, is being offered a new pay package by the company’s Board of Directors. This package includes the potential for $1 trillion in stock offerings if Musk can achieve several ambitious performance targets.
Since 2017, Musk has not received significant compensation. His previous pay package was completed by delivering billions in shareholder value through various performance-based “tranches,” resulting in the award of billions in stock.
Unfortunately, Musk was unable to claim this award due to a ruling by the Delaware Chancery Court, which deemed the payout an “unfathomable sum.”
Now, the company is taking steps to ensure that Musk receives the compensation he deserves. The Board recognizes Musk’s pivotal role in the success of Tesla and believes it is crucial to retain him as CEO.
The Board anticipates that various issues will be discussed at the upcoming Shareholder Meeting, where shareholders will have the opportunity to vote on approving the payout.
In a statement, Robyn Denholm and Kathleen Wilson-Thompson acknowledged Musk’s contributions and encouraged shareholders to support the new pay package:
“We’re asking you to approve the 2025 CEO Performance Award. The new award aims to build upon the success of the previous framework and challenges Elon to meet even more ambitious goals, including reaching adjusted EBITDA targets and growing the company’s market capitalization by trillions of dollars.”
Musk will need to achieve a series of challenging milestones to receive the 423,743,904 shares outlined in the pay package. The Board is confident in Musk’s abilities and is committed to ensuring he remains at the helm of Tesla.
This new pay package is designed to incentivize Musk to lead Tesla through a period of unprecedented growth and innovation. If he can meet the performance targets set forth by the Board, his leadership could propel Tesla to become the most valuable company in history.
Overall, the Board believes that Musk is the right person for the job and is hopeful that shareholders will support the proposed pay package to secure his continued leadership at Tesla.