Tesla’s board has proposed a record-breaking compensation plan for CEO Elon Musk, potentially making him the world’s first trillionaire. The pay package, revealed in regulatory filings on Friday, is tied to performance milestones over the next 10 years.
What’s in the Proposal?
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Musk would earn the package only in Tesla shares.
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No salary or cash bonuses are included.
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To qualify, Musk must raise Tesla’s value from $1 trillion to as high as $8.6 trillion.
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Targets include producing 20 million vehicles, deploying 1 million robotaxis, and building AI-powered bots.
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Musk must remain with Tesla for at least 7.5 years to unlock the full reward.
Currently, Musk holds 13% of Tesla stock. If approved, this plan could raise his stake by another 12%, giving him even more influence.
Shareholder Vote & Legal Scrutiny
Tesla shareholders will vote on the proposal on November 6. Critics, however, call the package “excessive,” especially given Tesla’s recent financial struggles, including a 25% stock drop this year.
This is not Musk’s first controversial pay deal. A similar 2018 package worth $55.8 billion is still under legal dispute in Delaware, though Tesla recently reincorporated in Texas to avoid such challenges.
What’s Next?
The outcome now rests with Tesla shareholders. If approved, it would become the largest corporate pay package in US history.
