Tesla Proposes $1 Trillion Pay Package for Elon Musk Amid Ambitious Targets
In a move that has left investors and experts stunned, Tesla's board of directors has proposed a staggering $1 trillion pay package for CEO Elon Musk if he achieves ambitious targets over the next decade. According to documents filed with regulatory authorities, the award would be granted in shares, with no salary or bonus, and would require Musk to meet a series of "moonshot" goals that some have criticized as unrealistic.
The proposed package, which has been met with skepticism from investors, would see Musk's compensation soar if he is able to boost Tesla's value eightfold, sell a million artificial intelligence robots, and sell another 12 million electric cars. The targets also include developing autonomous driving capabilities for all Tesla vehicles, achieving full self-driving capability in the company's semi-truck, and establishing a network of solar power generation systems.
Tesla's board urged investors to vote in favor of the package, stating that "growth that may seem impossible today can become a reality with the right vision and leadership." However, some experts have questioned the feasibility of these targets, citing concerns about the company's ability to meet them. "While Tesla has made significant strides in recent years, achieving a $1 trillion valuation is an extremely ambitious goal," said one analyst.
The proposal has also raised questions about Musk's already substantial wealth. According to Forbes, Musk is currently the world's richest person, with an estimated net worth of over $200 billion. The proposed package would add significantly to his fortune, sparking concerns among some investors that it may be too generous given his existing wealth.
Tesla's board has defended the proposal, stating that it is designed to incentivize Musk to continue driving innovation and growth at the company. "We believe that this compensation plan will help drive Tesla's continued success and cement its position as a leader in the electric vehicle market," said a spokesperson for the company.
The vote on the proposed package is expected to take place later this month, with investors being urged to cast their ballots in favor of the deal. However, some experts have warned that the proposal may face significant opposition from shareholders who are concerned about its implications for the company's financial health and Musk's already substantial wealth.
In a statement, Tesla's board said: "We believe that this compensation plan will help drive Tesla's continued success and cement its position as a leader in the electric vehicle market." The company has not commented further on the proposal.
The proposed package is just the latest development in a series of high-profile pay deals for top executives at major companies. In recent years, several CEOs have received massive payouts for meeting ambitious targets, sparking concerns about executive compensation and corporate governance.
As investors prepare to cast their ballots on the proposed package, one thing is clear: the outcome will have significant implications for Tesla's future and Musk's already substantial wealth.
This story was compiled from reports by BBC Business and BBC Business.
