Tesla makes a crazy offer to Elon Musk! The sheer size of the offer is jaw-dropping.
While CEO salaries and bonuses have been a topic of interest for years in the technology world, Tesla , the electric vehicle manufacturer with Elon Musk as CEO, is preparing to take a "crazy" step in this area.
Tesla's board of directors has proposed a $1 trillion compensation plan for CEO Elon Musk, which would be the largest corporate pay package in history, according to a Reuters report.
Musk, the world's richest person, has frequently stated he needs a larger stake in the company, even as his 2018 pay package, valued at $56 billion, is still being debated in the courts. The newly proposed plan is about 18 times the size of the controversial 2018 plan.
According to the report, the regulatory filing stated that traditional CEO compensation packages were “not suitable” for Musk, requiring a different plan from other tech executives.
NO SALARY OR CASH BONUS WILL BE GIVEN- The proposed plan would give Musk up to 12% of Tesla shares, equivalent to about $1.03 trillion if the company's market capitalization reaches $8.6 trillion.
- To achieve this goal, Tesla needs to increase its value by approximately $7.5 trillion over the next 10 years.
- If the package goes through in its entirety, Musk's current 13% voting power will increase significantly, further intensifying succession discussions with the administration.
- The award will be distributed in tranches based on market value and operational milestones (e.g. mass production of robotaxis and humanoid robots).
- Musk will not receive a salary or cash bonus; all compensation will be tied to performance.
Tesla shares rose about 2% in pre-market trading following the news.
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