Tesla’s Board of Directors, which has already compensated CEO Elon Musk more than the company has earned throughout its existence, now offers a new salary package worth up to $ 1 trillion.
Today, Tesla filed its proxy declaration ahead of its shareholders’ meeting in November, and there is a lot in there, but the headline steal is a new compensation plan proposed for the company’s controversial CEO Elon Musk.
Musk saw its previous compensation plan, worth $ 55 billion, the largest ever for a CEO, canceled by a judge who found that Musk had negotiated or more precisely, not negotiated against a board of directors under his control.
To compensate him, the board of directors Musk gave a salary package worth $ 26 billion last month and said a larger, long -term package would also be submitted for shareholders’ approval soon.
Now Tesla has submitted the new compensation package for shareholders’ approval, and in short it would give Musk, which is already Tesla’s largest shareholder, approx. $ 1 Billion more in stock options.
To receive the grant, Tesla would have to increase its market capital to approx. $ 8.5 trillion and achieve some milestones such as putting 1 million robotaxis in operation and delivering over 1 million robots.
Tesla board members Robyn Denholm and Kathleen Wilson-Thompson wrote in a letter to shareholders:
We ask you to approve the 2025 CEO Performance Award. By designing the new performance award, we explored several alternatives. Ultimately, the new price is aiming to build on the success of the 2018 CEO Performance Award Framework, which ensured that Elon was only paid for performance delivered and incentives to guide Tesla through a period of meteoric growth. The 2025 CEO Performance Award challenges Similarly Elon to again meet a number of even more ambitions, including operational milestones that focus on reaching adjusted EBITDA targets (thresholds up to 28 times higher than 2018 CEO Performance Award’s Top adjusted EBITDA Milepal) the commercial operation and delivery of 1 million AII company market value by trillion of dollars.
Tesla’s shareholder meeting will be held on November 6, 2025.
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Musk is already the person who benefits most of Tesla’s stock with a long shot. He would take advantage of even more if he hadn’t sold tens of thousands of billions worth of stock to buy an overpriced Twitter, but that was his own decision.
Now he managed to convince the board, which is obviously still fully under his control, to give him a new salary package worth up to $ 1 trillion as Tesla’s sales have gone down two consecutive years and earnings are in a constant decline to reach 3 years in a row now.
The craziest thing is that Tesla shareholders fortunately give him the money and hope he can pump Tesla’s stock enough to get paid.
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