"Tesla's board thinks Elon Musk is so critical to the company's future that it wants to pay him $1 trillion, a sum so mind-bendingly large that it might as well be $1 kajillion. But the company also knows Musk won't be around forever. (The billionaire has said he wants to "die on Mars.") Hence, probably the most straightforward task baked into the enormous pay packaged that Tesla's board announced on Friday."
""While the Board retains primary responsibility for succession planning and actively discusses and prepares contingency plans in the case of an unexpected departure, it is in Tesla's best interests to also develop a framework for long-term succession to support smooth leadership and knowledge transition at some point in the future," Tesla said in an SEC filing. "Musk's input is critical to develop this framework, and the Committee believes that establishing this requirement to earn the full 2025 CEO Performance Award creates a strong incentive"
Tesla proposed a record stock award potentially worth $1 trillion for Elon Musk contingent on meeting aggressive milestones. The package requires targets including placing 1 million robotaxis on the road and reaching an $8.5 trillion market capitalization. The final tranches also require Musk to help develop a framework for long-term CEO succession and assist in selecting a successor. The board framed the succession requirement as necessary for smooth leadership and knowledge transition and to bolster long-term stability. Musk's historical centrality to Tesla and recent company struggles factor into the board's incentives and planning.
Read at InsideEVs
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