"Tesla has proposed a new $1 trillion pay package for chief executive Elon Musk, in what would be the largest compensation deal ever awarded to a corporate leader. Under the plan, Musk would receive 12 tranches of shares over the next decade if Tesla hits a series of financial, production and technological milestones. If achieved in full, the deal would lift Tesla's valuation from about $1 trillion today to $8.5 trillion."
"To unlock the first tranche, Musk would need to nearly double Tesla's market capitalisation to $2 trillion while achieving a cumulative 20 million vehicle deliveries from the date of Tesla's first production car. Further milestones include rolling out one million Robotaxis, delivering one million AI-powered humanoid bots, and hitting aggressive earnings and product targets. Meeting them all would increase Musk's stake in Tesla to at least 25% and grant him greater voting power over the company's future."
The compensation plan awards Musk 12 tranches of shares over the next decade contingent on a series of financial, production and technological milestones. If all milestones are met, Tesla's valuation would rise from about $1 trillion to $8.5 trillion, adding nearly $7.5 trillion in shareholder value. The first tranche requires nearly doubling market capitalisation to $2 trillion and achieving cumulative 20 million vehicle deliveries since Tesla's first production car. Additional milestones include one million Robotaxis, one million AI-powered humanoid bots, and aggressive earnings and product targets. Meeting every milestone would raise Musk's stake to at least 25% and increase his voting power. The plan also requires a timely winding down of Musk's political activities and ties equity awards to market-cap thresholds plus operational targets.
Read at Business Matters
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