"It's a major escalation in the firm's increasingly desperate attempts to encourage its highly divisive leader to stick around and stay attentive. That's despite Tesla's core business imploding over the past year, largely the result of Musk's alienating behavior and surging international competition. "Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," chair Robyn Denholm and director Kathleen Wilson-Thompson wrote in a shareholder letter."
"That's more than double the valuation of the world's most valuable company today, the AI chip maker Nvidia. It would also make Musk, currently the richest man in the world, the first trillionaire. A full payout, still a decade away, would require Tesla to achieve some extraordinarily ambitious benchmarks. At the same time, as Bloomberg reports, the additional shares would raise Musk's personal stake to at least 25 percent, per the firm's filing with the Securities and Exchange Commission."
Tesla's board proposed a share award valued at about $1 trillion that would vest only if Tesla's market capitalization grows to at least $8.5 trillion. The payout would be spread over about a decade and would raise Elon Musk's stake to at least 25 percent. Achieving the benchmarks would require nearly eightfold growth from Tesla's current roughly $1.1 trillion valuation, surpassing today's most valuable companies such as Nvidia. The proposal follows previous rejected pay plans and public controversy over Musk's behavior and calls for greater voting control. The targets are extraordinarily ambitious and tied to long-term retention.
Read at Futurism
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