Tesla Inc. has proposed a new compensation plan for Chief Executive Officer Elon Musk that could be worth around $1 trillion, according to a proxy filing released Friday. The package is the largest of its kind in U.S. corporate history.
The 10-year plan ties Musk’s compensation to a series of performance milestones. To receive the full award, Musk must oversee Tesla’s market value rising from about $1.1 trillion today to at least $8.5 trillion. Other requirements include scaling Tesla’s robotaxi business, producing 20 million vehicles annually, deploying 1 million robotaxis in commercial operation, delivering 1 million Optimus robots, and raising adjusted EBITDA to $400 billion.
The package consists of 12 tranches of stock awards, each linked to both market capitalization and operational milestones. Musk must remain at Tesla as CEO or as an executive officer responsible for product or operations to qualify for the shares.
If Musk achieves the goals, his ownership stake in Tesla would rise to at least 25%. The potential payout, combined with his current holdings and options from his 2018 compensation package, could push the total value of his Tesla stake to more than $2 trillion.
Tesla shares rose 3.2% at 9:30 a.m. Friday in New York following the announcement.
Musk, 54, has previously said he requires a 25% stake in Tesla to maintain voting control and avoid pursuing artificial intelligence and robotics ventures outside the company. He sold a large portion of his Tesla stock to finance his acquisition of Twitter, later renamed X, which was acquired by his artificial intelligence company xAI earlier this year.
During negotiations, Musk warned he would focus on other projects unless he received assurances of at least 25% voting control at Tesla and compensation for past contributions.
On May 16, Tesla amended its corporate bylaws to require shareholders to own at least 3% of company stock before filing lawsuits, a move expected to limit future legal challenges to executive compensation.
The 10-year plan ties Musk’s compensation to a series of performance milestones. To receive the full award, Musk must oversee Tesla’s market value rising from about $1.1 trillion today to at least $8.5 trillion. Other requirements include scaling Tesla’s robotaxi business, producing 20 million vehicles annually, deploying 1 million robotaxis in commercial operation, delivering 1 million Optimus robots, and raising adjusted EBITDA to $400 billion.
The package consists of 12 tranches of stock awards, each linked to both market capitalization and operational milestones. Musk must remain at Tesla as CEO or as an executive officer responsible for product or operations to qualify for the shares.
If Musk achieves the goals, his ownership stake in Tesla would rise to at least 25%. The potential payout, combined with his current holdings and options from his 2018 compensation package, could push the total value of his Tesla stake to more than $2 trillion.
Tesla shares rose 3.2% at 9:30 a.m. Friday in New York following the announcement.
Musk, 54, has previously said he requires a 25% stake in Tesla to maintain voting control and avoid pursuing artificial intelligence and robotics ventures outside the company. He sold a large portion of his Tesla stock to finance his acquisition of Twitter, later renamed X, which was acquired by his artificial intelligence company xAI earlier this year.
During negotiations, Musk warned he would focus on other projects unless he received assurances of at least 25% voting control at Tesla and compensation for past contributions.
On May 16, Tesla amended its corporate bylaws to require shareholders to own at least 3% of company stock before filing lawsuits, a move expected to limit future legal challenges to executive compensation.