Tesla’s board has proposed an extraordinary pay package for CEO Elon Musk, potentially worth more than $1 trillion (£740bn) if he meets a series of ambitious targets over the next decade.
The plan would see Musk awarded shares gradually, rather than a salary or bonus, contingent on achieving milestones including an eightfold increase in Tesla’s market value, the sale of 1 million artificial intelligence robots, and 12 million additional Tesla vehicles. Each target is paired with an operational benchmark and earnings goals, designed to reward extraordinary growth.
The company’s board encouraged shareholders to approve the package. “Growth that may seem impossible today can be unlocked with new ideas, better technology, and greater innovation,” said Tesla Chair Robyn Denholm. She added that the awards would “drive peak performance from our visionary leader” and were “fundamental to Tesla achieving these goals and becoming the most valuable company in history.”
Under the proposed plan, Musk would receive the shares in 12 tranches, with the first milestone requiring Tesla’s market value to double to $2 trillion. The final milestone would see Tesla’s valuation reach $8.5 trillion, more than twice the current value of chipmaker Nvidia, the world’s most valuable company.
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The proposal comes after Musk received $29 billion in shares last month, following the U.S. court’s rejection of his original $50 billion award as “unfair to shareholders.”
However, some experts have criticized the package. Dan Coatsworth, an analyst at AJ Bell, described it as “beggars belief,” questioning whether a single individual could be worth such a sum. He highlighted Tesla’s challenges, noting declining sales, rising competition, and reputational issues linked to Musk’s controversial public statements and political engagements.
Reports earlier this year suggested Tesla’s board considered replacing Musk, though the company denied the claims, calling them “absolutely false.” Coatsworth said the new plan underscores the board’s willingness to secure Musk’s leadership despite these concerns.
As Tesla faces slowing sales and increased market pressure, the proposal marks an unprecedented attempt to retain and incentivize its high-profile founder, even amid controversy and skepticism from investors and analysts.
