Tesla Board Proposes Unprecedented $1 Trillion Compensation Package for Elon Musk
Tesla's board has proposed an unprecedented $1 trillion compensation package for CEO Elon Musk, contingent on achieving an $8.5 trillion market cap and 20 million vehicle deliveries by 2030, aiming to retain him for a decade.
Tesla offers Elon Musk up to $1 trillion pay package
Washington Examiner
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Overview
- Tesla's board has proposed an unprecedented compensation package for CEO Elon Musk, potentially reaching $1 trillion, aimed at retaining him until 2030 and making him the world's first trillionaire.
- To fully unlock the $1 trillion, Tesla must achieve an $8.5 trillion market capitalization and deliver 20 million vehicles within the next 10 years.
- Musk is required to remain with Tesla for at least seven and a half years to cash out any stock, with the full amount contingent on a 10-year commitment to the company.
- These ambitious goals face significant challenges, including a 25% drop in Tesla shares this year and a decline in quarterly profits from $1.39 billion to $409 million.
- If successful, this historic package would align with Tesla's vision to introduce innovative and affordable technologies at scale, solidifying Musk's crucial role in the company's future.
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Analysis
Center-leaning sources frame this story by highlighting the unprecedented scale of Elon Musk's proposed pay package while consistently linking Tesla's recent business struggles to his political activities and "toxic" reputation. They question the justification for such a massive award amidst declining sales and profits, suggesting his external engagements are detrimental to the company's performance and brand.
"The proposed pay package is unprecedented in both its size and the scale at which Tesla will have to grow for Musk to achieve it."
Business Insider"The board wants Musk’s full attention on Tesla."
Gizmodo"The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company."
ABC News"The board's unprecedented pay proposal comes just months after it was forced to deny reports that it was looking to replace Musk."
BBC News"Tesla's board of directors is asking shareholders to approve a new pay package for CEO Elon Musk that could be worth up to $1 trillion in a decade, representing one of the richest compensation packages in corporate history."
CBS News"The massive compensation offer comes as Tesla faces one of its worst sales streaks, with its stock falling 16% this year, driven by rising competition, government cuts to EV subsidies, and Musk’s polarizing politics."
Semafor"The goals set out for Musk and Tesla are extremely ambitious given recent tumult at the Texas company."
Associated Press"Tesla has proposed a new 10-year compensation plan for CEO Elon Musk that could be worth as much as $1 trillion even as the EV maker’s car business stumbles and it sets its sights on humanoid robotics and AI."
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FAQ
Tesla must reach an $8.5 trillion market capitalization and deliver 20 million vehicles by 2030 for Musk to fully unlock the $1 trillion compensation package.
Musk is required to remain with Tesla for at least seven and a half years to begin cashing out any stock, with the full compensation contingent on a 10-year commitment.
Tesla faces significant challenges, including a 25% drop in share price during the year and a decline in quarterly profits from $1.39 billion to $409 million, along with a slump in its main electric vehicle business partly attributed to Elon Musk's political controversies.
The package aims to retain Musk and ensure his leadership as Tesla pushes to innovate and scale affordable technologies, solidifying his crucial role in the company’s future.
The compensation is primarily in the form of Tesla shares, not cash, spread out over various packages contingent on performance targets.
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