"The long-awaited proposal, designed to incentivize Musk to lead Tesla for years to come, sets a series of ambitious benchmarks he must meet to earn the full payout, including expanding Tesla's nascent robotaxi business and growing the company's market value to at least $8.5 trillion from about $1.1 trillion today. The plan spans 10 years. The additional shares Musk could receive would push his stake in the electric-vehicle maker to at least 25%, according to the terms detailed in Tesla's proxy filing Friday."
"Musk has publicly stated he wants a stake of that size. The plan dangles a financial windfall and expanded control of the company to Musk, already the world's richest person, after his 2018 package valued in excess of $50 billion was struck down by a Delaware court. While Tesla appeals that decision, the board is seeking other ways to compensate its CEO, including with an interim stock award in early August valued at about $30 billion."
"The incentives in the new plan aim to keep Musk's focus on Tesla while it pursues growth in newer markets including robotics and artificial intelligence. Friday's filing also included a non-binding shareholder proposal for Tesla to take a stake in Musk's xAI startup, an idea Musk has previously discussed. The proposals, including the compensation agreement, will be voted on by investors at the annual meeting set for Nov. 6."
Tesla proposed a 10-year compensation package for CEO Elon Musk potentially worth about $1 trillion, contingent on achieving aggressive milestones. The plan requires expansion of Tesla's robotaxi business and growth of market value to at least $8.5 trillion from roughly $1.1 trillion. Additional awards would increase Musk's ownership to at least 25%. The package follows a 2018 award struck down by a Delaware court, while the board explores alternative awards including an interim stock grant valued near $30 billion. The filing included a non-binding proposal for Tesla to take a stake in Musk's xAI. Investors will vote Nov. 6.
Read at www.mercurynews.com
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