Tesla Proposes Staggering $1 Trillion Pay Package for Elon Musk Amid Ambitious Targets
The board of Tesla has proposed a staggering pay package worth over $1 trillion for CEO Elon Musk if he achieves ambitious targets over the next decade, including boosting the company's value eightfold and selling millions of electric cars and AI robots. According to the proposal, Musk would not earn a salary or bonus but would instead be gradually awarded shares that would be worth $1 trillion if he meets all the targets.
The package, which has been met with skepticism from investors, requires Musk to meet a series of "moonshot" goals, including selling 12 million Tesla cars and one million artificial intelligence robots. The proposal also states that Musk's pay will be tied to the company's performance over the next decade, with the award being granted in shares rather than cash.
The board has urged investors to vote in favor of the package, arguing that it is necessary to motivate Musk to achieve the ambitious targets. "Growth that may seem impossible today can become a reality tomorrow," the proposal states. However, some investors have expressed concerns that the package is too generous given Musk's already substantial wealth.
According to Tesla's board, the pay package is designed to incentivize Musk to drive growth and innovation at the company. "We believe this proposal will motivate Elon to continue pushing the boundaries of what is possible," a spokesperson for the company said. However, some experts have questioned the feasibility of the targets set out in the proposal.
"I think it's unrealistic to expect Tesla to achieve these targets without significant investment and resources," said David Kudla, CEO of Mainstream Investment Advisors. "While I applaud Elon Musk's ambition, I'm not sure this pay package is the right way to motivate him."
The proposal has been met with criticism from some investors who argue that it may be too generous given Musk's already substantial wealth. However, others have defended the package as necessary to drive growth and innovation at the company.
Tesla's board will present the proposal to shareholders for a vote in the coming weeks. If approved, the pay package would be one of the largest in corporate history, surpassing even the $650 million award granted to Google co-founders Larry Page and Sergey Brin in 2004.
The outcome of the vote is uncertain, but it is clear that the proposal has sparked a heated debate about the role of executive compensation in driving growth and innovation at companies. As one investor noted, "This proposal raises important questions about what motivates executives to drive growth and innovation, and whether pay packages like this are the right way to achieve those goals."
This story was compiled from reports by BBC Business and BBC Business.
