Tesla Board Proposes Record $1 Trillion Pay Package for Elon Musk
The plan, disclosed in a regulatory filing, would award Musk as much as 12 percent of Tesla’s outstanding stock if the company meets a series of ambitious operational and financial milestones
Tesla’s board has proposed an unprecedented compensation package for CEO Elon Musk that could be worth up to $1 trillion over the next decade, setting the stage for one of the most consequential shareholder votes in corporate history.
The plan, disclosed in a regulatory filing, would award Musk as much as 12 percent of Tesla’s outstanding stock if the company meets a series of ambitious operational and financial milestones. These include boosting Tesla’s annual production to 20 million vehicles, deploying one million robotaxis and one million humanoid robots, and securing 10 million active Full Self-Driving subscriptions. The company’s market capitalization would need to climb from about $1.1 trillion today to $8.5 trillion within ten years for Musk to realize the full payout.
The package also requires Musk to remain with Tesla for at least seven and a half years, with a succession plan for future leadership tied to the later stages of the award. The board, led by chair Robyn Denholm, argued that the proposal was essential to keep Musk focused on Tesla as it pushes deeper into artificial intelligence, robotics and autonomous driving.
Investors reacted positively to the announcement, sending Tesla shares up more than three percent. The proposal comes as the company continues to navigate intense competition in the electric vehicle market while seeking to expand its business model into new technologies.
The timing of the deal has raised questions. Earlier this year, a Delaware court struck down Musk’s $50 billion compensation plan from 2018, ruling that Tesla’s board lacked independence in approving it. The company has appealed the decision, and only last month granted Musk an interim equity award valued at nearly $24 billion.
Critics have already voiced concerns about governance, dilution of shareholder value and the concentration of power in Musk’s hands. Supporters, however, argue that the scale of the award reflects the scale of the challenge Tesla has set for itself.
Shareholders will vote on the proposal at Tesla’s annual meeting on November 6. If approved, the package would represent the largest executive pay deal in corporate history.