"This $1 trillion pay package is a bit of a gimmick, and Tesla investors like myself will still get to vote on it come November. Today, the 423.7 million additional Tesla shares that Musk could acquire are worth "merely" $148.7 billion. If Musk can meet 12 highly ambitious milestones over the coming decade, including increasing Tesla's overall value eightfold to $8.5 trillion, those extra shares will be his, and will at that point be worth close to $1 trillion."
"Normally the CEO of a car company overseeing a year of disastrous sales numbers, primarily as a result of his political activities that seemed almost intentionally engineered to alienate large swathes of his customer base, would not be up for a big reward. But in negotiations with the board Musk threatened to "pursue other interests" if his demands for a truly historic pay package were not met."
"To be fair to the Tesla board, though, they're kind of between a rock and a hard place. As odious a man as he continually proves himself to be, Musk has achieved borderline miraculous things with Tesla and his other companies before, and keeping him challenged at Tesla might be the best way to keep him out of further forays into politics and social media."
Elon Musk holds the highest CEO pay and the greatest personal wealth. Tesla's board approved a pay package that could grant Musk 423.7 million additional shares if he meets 12 demanding milestones over a decade. The additional shares are currently worth $148.7 billion but could be worth nearly $1 trillion if Tesla's market value rises eightfold to $8.5 trillion. Musk reportedly leveraged the negotiations by threatening to "pursue other interests" if demands were unmet. The package drew criticism as a gimmick and concerns about rewarding poor recent performance tied to political actions that alienated customers. Investors will vote on the package in November.
Read at Above the Law
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