Tesla’s board has proposed to award CEO Elon Musk around $1 trillion worth of shares as part of an unprecedented pay package.
Tesla’s board has proposed an unprecedented pay package for its CEO Elon Musk: around $1 trillion worth of shares, Bloomberg reports.
It’s a major escalation in the firm’s increasingly desperate attempts to encourage its highly divisive leader to stick around and stay attentive. That’s despite Tesla’s core business imploding over the past year, largely the result of Musk’s alienating behavior and surging international competition.
„Simply put, retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history“, chair Robyn Denholm and director Kathleen Wilson-Thompson wrote in a shareholder letter.
However, that $1 trillion figure comes with some significant asterisks. Musk will have to work for the money, growing the flailing automotive company to a staggering market value of at least $8.5 trillion — almost eight times its current $1.1 trillion valuation today.
That’s more than double the valuation of the world’s most valuable company today, the AI chip maker Nvidia. It would also make Musk, currently the richest man in the world, the first trillionaire.
A full payout, still a decade away, would require Tesla to achieve some extraordinarily ambitious benchmarks. At the same time, as Bloomberg reports, the additional shares would raise Musk’s personal stake to at least 25 percent, per the firm’s filing with the Securities and Exchange Commission.
