Tesla Offers Elon Musk Trillion-Dollar Compensation Package
Tesla has proposed an unparalleled compensation package for CEO Elon Musk, aiming to secure his long-term commitment. The package, worth potentially trillions, follows a Delaware court ruling that invalidated his previous $56 billion package. Musk has already received an advance payment of $30 billion in stocks.
The new package, structured in twelve tranches, each representing about one percent of Tesla's stock, requires Musk to meet both financial and operational goals. These include increasing Tesla's market capitalization to a staggering 8.5 trillion dollars and delivering 20 million vehicles. Additionally, Musk must sell one million humanoid robots, a significant milestone for the company's robotics division. Tesla's board, led by chairperson Robyn Denholm, emphasizes Musk's retention as vital for the company's future success, stating that 'keeping Elon is fundamental to Tesla becoming the most valuable company in history'.
Critics argue that the package concentrates too much power in Musk's hands and sets unrealistically high goals. However, supporters believe such ambitious targets are necessary to secure Musk's interest and drive Tesla's growth in an increasingly competitive environment. If Musk succeeds, it could potentially make him the world's first trillionaire.
Tesla shareholders will vote on the deal on November 6. Despite the company's stock falling by up to 30 percent this year due to decreased vehicle deliveries and Musk's political statements, the board remains confident in Musk's leadership. If approved, the compensation package could accelerate Tesla's growth trajectory and solidify Musk's position as a driving force in the global automotive and technology industries.
