"The compensation would be delivered in shares and tied to performance milestones set by the Tesla board over the next 10 years. The governing board for the electric carmaker Tesla has put forward a pay package for CEO Elon Musk that could make him the world's first trillionaire but only if he meets a series of high-performance standards over the next 10 years. The proposal became public on Friday, as part of the company's regulatory filings."
"This is a ridiculously large pay package. It raises lots of questions, Brian Quinn, a professor at Boston College Law School, told the news agency Reuters. Quinn added he had little doubt about how the shareholders will vote. Given that Tesla's stock price is basically all vibes and appears to have very little to do with the automaker's actual performance, I suspect they will approve this package."
"In the regulatory filing, Tesla leaders indicated that they felt Musk deserved the higher compensation range, despite the carmaker's recent wobbles on Wall Street. Traditional compensation packages granted to executives at other companies were determined to not be appropriate for designing Mr. Musk's incentive compensation, the filing explained. To earn the trillion-dollar pay package, Musk would have meet ambitious benchmarks for Tesla, reversing its drooping sales and increasing its total value and car production over the next decade."
Tesla's governing board proposed a 10-year compensation plan for CEO Elon Musk, delivering shares tied to performance milestones. The package could make Musk the world's first trillionaire if he meets a series of high-performance standards. The proposal appeared in regulatory filings and will be subject to a shareholder vote on November 6. The filing noted the plan underwent review by a committee of independent directors. Tesla leaders stated that traditional executive compensation approaches were inappropriate for designing Musk's incentive package. Earning the package requires ambitious benchmarks, including a short-term valuation boost and increases in car production and overall company value.
Read at www.aljazeera.com
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