"That package is conditional: Musk would earn no salary, but would unlock Tesla stock worth about a trillion dollars if the company meets certain criteria within the next decade. Among other targets, he would have to raise the company's market capitalization, the value of all its stock put together, from about $1.5 trillion today to above $8.5 trillion. For comparison, the most valuable company in the world, Nvidia the chipmaker boosted by the AI boom is worth $4.83 trillion."
"Musk is already unfathomably wealthy, worth some $460 billion, according to the Bloomberg Billionaires Index. That's thanks in large part to Tesla's soaring stock price, currently worth about $465 per share. (That's more than 400 times more valuable than at the company's IPO in 2010.) A previous pay package that offered Musk a then-unprecedented $55.8 billion has been tied up in a lengthy court battle after a judge ruled that the board was too cozy with Musk in designing it."
"That case is still pending, and Tesla's board has made sure that Musk will receive tens of billions of dollars' worth of stock for his last few years of work, no matter how it is resolved. But what about pay for his future work? Tesla's board argues that they need to incentivize him to "remain at Tesla and focus his unmatched leadership abilities" on the company, and that extraordinary results merit extraordinary pay."
Tesla shareholders will vote on a conditional pay package that grants Elon Musk no salary but potential stock awards worth about $1 trillion if performance targets are met within ten years. The package requires raising Tesla's market capitalization from about $1.5 trillion to above $8.5 trillion, surpassing the world's most valuable companies. Musk already has roughly $460 billion in personal wealth, driven largely by Tesla's stock, and a prior $55.8 billion package remains tied up in litigation over board conduct. Tesla's board says the plan aims to retain Musk's leadership, while critics note recent distractions and weaker 2025 profits.
Read at www.npr.org
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