Tesla has offered CEO Elon Musk a new compensation agreement potentially worth up to $1 trillion, a massive package without precedent in corporate America.
Bloomberg reports that EV giant Tesla has proposed a new compensation agreement for CEO Elon Musk that could be worth an astonishing $1 trillion. The long-awaited proposal, designed to incentivize Musk to lead Tesla for years to come, sets a series of ambitious benchmarks he must meet to earn the full payout.
Breitbart News previously reported that a Delaware judge had voided Musk’s prior $56 billion pay package:
Following the initial ruling in January, Tesla conducted a shareholder vote in June at its annual meeting in Austin, Texas, asking investors to “ratify” Musk’s 2018 CEO pay plan. Musk’s attorneys attempted to persuade the judge to reverse her opinion after the trial, relying on the results of that vote. However, Chancellor McCormick rejected this argument, stating, “Even if a stockholder vote could have a ratifying effect, it could not do so here. Were the court to condone the practice of allowing defeated parties to create new facts for the purpose of revising judgments, lawsuits would become interminable.”
According to the terms detailed in Tesla’s proxy filing on Friday, the plan spans 10 years and requires Musk to significantly expand Tesla’s nascent robotaxi business and grow the company’s market value to at least $8.5 trillion from its current valuation of about $1.1 trillion. If Musk hits all the performance targets, the additional shares he would receive could push his holdings in Tesla to at least 25 percent, aligning with his publicly stated desire to attain a stake of that size.
The incentives in the new plan aim to keep Musk focused on Tesla as it pursues growth in newer markets such as robotics and AI. The proxy also included a non-binding shareholder proposal for Tesla to take a stake in Musk’s xAI startup, an idea the CEO has previously discussed. Investors will vote on these proposals, including the compensation agreement, at the annual meeting set for November 6.
Tesla’s board is standing by Musk despite his numerous other commitments. In addition to overseeing Tesla, Musk leads four other companies: SpaceX, xAI, Neuralink, and the Boring Company. However, he has assured investors that he is committed to remaining at the helm of Tesla for at least another five years.
Under the new plan, Musk must remain at Tesla as either CEO or an executive officer responsible for product or operations to receive the shares, which are divided into 12 tranches. To earn them, he must hit 12 market capitalization milestones matched with 12 operational milestones, such as delivering 1 million Optimus robots and 20 million Tesla vehicles, having 1 million robotaxis in commercial operation, and growing adjusted EBITDA to $400 billion.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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