Tesla’s Board of Directors has proposed a new salary package for the company’s CEO Elon Musk, which would result in $ 1 trillion in share supply if he is able to meet several high performance goals.
Musk, which has not been meaningfully compensated since 2017, completed its last salary package by delivering billions in the shareholder value through a series of performance -based “tranches”, which was met and resulted in billions in stock.
Elon Musk’s new salary plan binds the billionaire status to Teslas $ 8.5 trillion valuation
However, Musk was unable to claim this award due to a decision by Delaware Chancery Court, which considered the payment of an “impenetrable sum.”
Now the company is taking steps to ensure that Musk gets paid as the board feels that it is important to retain his CEO, who has been responsible for much of the company’s success.
This is not a statement to undermine the work of all Tesla’s fantastic employees, but a ship must be a captain of someone and Musk has proven that he is the right person for the job.
The Board of Directors also believes that based on a statement from the company in its power of attorney will be discussed during the upcoming shareholder meeting.
Robyn Denholm and Kathleen Wilson-Thompson recognized Musk’s contribution in a statement that called on shareholders to vote to approve the payment:
“We are asking 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 -Frames Aspiration Goals, including Operational Milestone, which focused on reaching adjusted EBITAa (thresholds, CEO Performance Award’s top adjusted EBITDA Milk Pile) and roll out of new or expanded product offerings (including 1 million robotaxis in commercial operation and delivery of 1 million AI bots), all while growing the company’s marketing of Trillions of Dollars.
Yes, you read it correctly: In 2018 Elon had to grow Tesla with billions; By 2025 he has to grow Tesla with trillion – to be accurate, he has to create almost $ 7.5 trillion in value for shareholders for him to receive the full price.
In addition to these unprecedented performance milestones, the 2025 CEO Performance Award also includes innovative structural features, born out of the special committee’s considered analysis and extensive shareholder feedback. These features include supercharged detention (at least seven and a half years and up to 10 years to vest in full allocation), structural protection to minimize the share price valley due to administration of this allocation and then incentives for Elon to participate in the Board’s continued development of a framework for long-term CEO Succession. If Elon achieves all performance milestones during this principle -based award from 2025 CEO Performance, his management will drive Tesla to become the most valuable company in history. “
Musk wants a lot of things to achieve to receive the 423,743,904 shares divided into 12 tranches.
However, the board feels that he is the right person for the job and they want him to remain CEO. This package must ensure that he stays with Tesla as long as the shareholders feel the same way.