Tesla has proposed a new $1 trillion pay package for chief executive Elon Musk, in what would be the largest compensation deal ever awarded to a corporate leader.
Under the plan, Musk would receive 12 tranches of shares over the next decade if Tesla hits a series of financial, production and technological milestones. If achieved in full, the deal would lift Tesla’s valuation from about $1 trillion today to $8.5 trillion, making it the most valuable company in the world and adding nearly $7.5 trillion in shareholder value.
The plan also stipulates that Musk’s activities in the political sphere “wind down in a timely manner”, reflecting investor concern over his public clashes and a messy split with US President Donald Trump.
To unlock the first tranche, Musk would need to nearly double Tesla’s market capitalisation to $2 trillion while achieving a cumulative 20 million vehicle deliveries from the date of Tesla’s first production car.
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