Tesla's Board Proposes $1 Trillion Compensation Plan for Elon Musk
Elon Musk's compensation plan, proposed by Tesla's board, could see him earn over $1 trillion if he meets certain objectives over the next decade. The new proposal stipulates that Musk would gain shares in 12 increments, each contingent upon reaching specific market value milestones, culminating in a final target of $8.5 trillion.
To qualify for the full compensation, Musk must increase Tesla's value eightfold, sell one million AI robots, and twelve million Tesla vehicles, among other ambitious goals. Each market milestone must be paired with operational achievements, including ambitious sales figures for vehicles and robots, as well as improving certain earnings metrics by 24 times. Musk's compensation would be linked strictly to the acquisition of Tesla shares, reaching $1 trillion if all targets are met.
Tesla has recently reported its fastest sales decline in a decade, raising concerns about Musk's public persona and the company's competitive edge. The investment analyst, whose name is not specified, doubts the fairness of the management proposal and is skeptical about Musk's ability to deliver the ambitious company goals. Analyst Dan Coatsworth also expressed skepticism about the proposed compensation, questioning its fairness and the board's decision to reinforce Musk's position amidst performance concerns. Tesla Chair Robyn Denholm, however, stated that retaining Musk is crucial for achieving these ambitious targets and that this incentive fosters maximum performance.
The proposed compensation plan for Elon Musk sets ambitious targets for Tesla's growth over the next decade. While some analysts question its fairness and Musk's ability to deliver, Tesla's chair maintains that retaining Musk is key to achieving these goals. If Musk meets all targets, his compensation could reach $1 trillion.
