Tesla Proposes Record $1 Trillion Performance-Linked Compensation Plan for Elon Musk
Tesla's board has unveiled an unprecedented compensation package for CEO Elon Musk, tying his potential earnings directly to the company's market valuation. The 10-year plan could grant Musk up to 12% of Tesla's equity if the automaker achieves an $8.5 trillion capitalization target—a figure eight times its current worth.
The performance-based structure includes incremental milestones starting at $2 trillion, with shares vesting at each threshold. This move comes as Tesla faces slowing EV sales, intensifying competition, and a strategic pivot toward AI and robotics. Governance experts debate the implications for shareholder dilution and executive influence.