WASHINGTON (dpa-AFX) - Tesla's board has proposed a landmark compensation package for CEO Elon Musk, one that could propel him to become the world's first trillionaire if he met a series of highly ambitious milestones that would dramatically expand the company's scale and value.
Filed with regulators on Friday, the plan ties Musk's pay entirely to Tesla stock and could add nearly $900 billion to his current $400 billion fortune.
To receive the full payout, Tesla's market capitalization would need to climb from about $1.1 trillion today to $8.5 trillion over the next decade. Shareholders are scheduled to vote on the plan at the annual meeting on November 6.
The deal requires Musk to remain at Tesla for at least 10 years and achieve sweeping targets, including deploying one million autonomous taxis, introducing one million humanoid robots, and lifting annual operating profit to $400 billion from last year's $17 billion. If successful, Musk's stake could nearly double to 29 percent, giving him an extraordinary level of control.
The proposal comes amid slowing sales, shrinking profits, and fierce competition from Chinese automakers such as BYD and Geely. While critics argue Musk has been distracted by ventures including SpaceX and his AI startup, xAI, Tesla's board insists his leadership is indispensable as the company pivots toward artificial intelligence, robotics, and autonomous driving.
The package mirrors Musk's 2018 pay deal struck down by a Delaware court earlier this year as excessive but Tesla's relocation to Texas could limit future legal challenges.
If approved, it would mark the largest executive compensation plan in corporate history, underscoring both Musk's unrivaled influence at Tesla and the extraordinary risks tied to its future growth.
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