Tesla Board Proposes $1 Trillion Pay Plan for CEO Elon Musk
The record-breaking 10-year package is tied to ambitious goals, including an $8.5 trillion market cap and mass robotaxi deployment.
Tesla's board of directors has unveiled a new long-term compensation plan for CEO Elon Musk potentially worth an unprecedented $1 trillion, sending shares of the electric automaker up 3.6% in response to the news.
The proposed 10-year, performance-based award, which requires shareholder approval, would be the largest executive compensation package in corporate history. , is tied to a series of aggressive operational and financial milestones. To receive the full payout, Musk must guide Tesla to a market capitalization of $8.5 trillion—a significant leap from its current $1.1 trillion valuation—and achieve massive growth targets, including the delivery of 20 million vehicles and the deployment of one million autonomous robotaxis.
In a letter to investors, Tesla Chair Robyn Denholm emphasized the board's belief that retaining and motivating its chief executive is crucial for the company's future. " to Tesla achieving these goals and becoming the most valuable company in history," Denholm stated, arguing that Musk's "singular vision is vital" at this critical juncture.
The proposal comes after a contentious period regarding Musk's pay. A previous $55.8 billion package from 2018 was voided by a Delaware court before shareholders recently voted to reinstate it, a decision that remains under appeal. According to reports, the new plan was developed after Musk expressed discomfort with his current stake and indicated he might pursue his other interests if not assured a path to a 25% voting interest in the company.
While the performance targets are exceptionally ambitious, the board argues the all-or-nothing structure aligns Musk's interests directly with those of shareholders. The entirely share-based package requires Musk to remain with Tesla for at least seven and a half years to vest any shares, ensuring his long-term focus remains on the electric vehicle and AI giant. Shareholders are scheduled to vote on the on November 6.