Tesla Board Proposes $1 Trillion Pay Package for Elon Musk if Ambitious Targets Met

Tesla Proposes $1tn Award for Elon Musk if He Hits Ambitious Targets SAN FRANCISCO (AP) - Tesla's board of directors has proposed a pay package worth over $1 trillion for CEO Elon Musk, contingent on him achieving a list of ambitious targets over the next decade. The proposal, which was announced in a filing with the Securities and Exchange Commission, would award Musk shares worth up to $1 trillion if he meets or exceeds goals such as boosting Tesla's market value eightfold, selling 12 million more cars than previously forecasted, and launching a million artificial intelligence robots. According to the proposal, Musk would not receive a salary or bonus but would instead be awarded shares that would vest over time. The package is designed to incentivize Musk to drive growth and innovation at Tesla, which has been facing increasing competition in the electric vehicle market. "Retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history," said Robyn Denholm, chair of Tesla's board of directors. "Growth that may seem impossible today can be unlocked with new ideas, better technology and greater innovation." The proposal comes after Musk was awarded $29 billion in shares last month following a court ruling that upheld his original $50 billion award. Tesla's stock price has been volatile in recent months, and the company's market value has fluctuated significantly. However, under Musk's leadership, Tesla has become one of the most valuable companies in the world, with a market capitalization of over $1 trillion. The proposal is subject to approval by shareholders, who will vote on the package at an upcoming meeting. If approved, it would be one of the largest pay packages ever awarded to a CEO. Industry experts say that the proposal reflects Tesla's commitment to innovation and growth under Musk's leadership. "This proposal demonstrates Tesla's confidence in Elon's vision for the company," said Michael Ramsey, an analyst with Gartner Research. "It also highlights the importance of retaining top talent in the competitive electric vehicle market." The proposal has sparked debate among investors and analysts, who are weighing the potential benefits and risks of awarding such a large pay package to Musk. Tesla's board is urging shareholders to vote in favor of the proposal, citing the company's growth prospects and Musk's track record as CEO. "We believe that this proposal will drive peak performance from our visionary leader," Denholm said. The outcome of the shareholder vote will be closely watched by investors and analysts, who are eager to see how Tesla's board responds to growing concerns about executive compensation in the tech industry. In related news, Tesla's stock price has been rising steadily in recent weeks, with shares up over 10% since the proposal was announced. The company's market value is expected to continue growing as it expands its product line and enters new markets. The proposed pay package for Musk is a testament to his influence on the electric vehicle industry and his role as one of the most innovative leaders in the tech sector. As Tesla continues to push the boundaries of innovation, investors will be watching closely to see how the company's growth prospects unfold under Musk's leadership. *Reporting by Bbc.*