Bloomberg reports that electric car giant Tesla is working on a compensation deal for its founder and CEO Elon Musk that could be worth up to $1 trillion, an amount unprecedented in corporate America. (Synopsis: Compliance pressure + brain drain, Musk's "X super app" dream is going cold? (Background added: Musk: Want to make money? Buy a full GPU! But he hides the "investment steps" in the middle) According to Bloomberg, electric car giant Tesla is working on a compensation deal for its founder and CEO Elon Musk that could be worth up to $1 trillion, an amount unprecedented in corporate America. The plan will not only provide Musk with a huge financial return, but will also increase his voting rights in the company to at least 25% to ensure that he continues to lead Tesla into its future goals. The highly anticipated proposal aims to motivate Musk to continue leading Tesla for years to come, but it also sets a series of challenging goals that Musk needs to achieve in order to get paid in full. According to Tesla's proxy statement filed today (5), the plan is a 10-year plan with 12 phases of share grants, with a total value of $1 trillion if Musk achieves all performance goals. Specifically, Musk will receive a 1% equity award for every $500 billion increase in Tesla's market capitalization, which will increase the company's market value from about $1 trillion today to at least $8.5 trillion. In addition, Musk needs to meet operational goals, including expanding the robo-taxi business, achieving cumulative production and delivery of 20 million vehicles, meeting adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) metrics, and launching new products such as "1 million robo-taxis in commercial operation" and "delivery of 1 million AI robots." The document also states that Musk must participate in the board's framework for developing a long-term CEO succession plan to receive rewards for the final two phases. In this regard, Tesla said in the shareholder letter, through Chairman Robyn Denholm and Director Kathleen Wilson-Thompson: "Retaining and motivating Elon is fundamental to Tesla's achievement of these goals and becoming the most valuable company in history." In addition, Tesla also revealed in the document that it will ask shareholders to vote at the shareholders' meeting on November 6 to decide whether to invest in Musk's artificial intelligence startup xAI. Musk previously raised an informal poll on the social platform X, asking whether Tesla should invest $5 billion in xAI. Controversy over compensation plans However, this new compensation plan is not without controversy. Tesla's 2018 compensation package for Musk, valued at more than $50 billion, was ruled by a Delaware court to be excessive and improperly awarded and must be revoked. In the "Tornetta v. Musk, the judge pointed out that Musk dominated the compensation negotiations and that the board failed to provide legally due information before shareholders voted. The case is still under appeal. Therefore, the proposal of the new plan has raised questions that Musk has too much control over Tesla and that the board of directors may not have enough independence in corporate governance. In addition, Musk's time allocation has also attracted attention, he also manages SpaceX, Neuralink, The Boring Company and xAI, and has been involved in political activities many times, and it is still unknown whether he will be able to complete the board plan. Related reports Musk is furious! xAI accuses former engineers of stealing Grok secrets and cashing out $7 million to jump ship OpenAI Musk threatened to sue Apple: App Store ranking has monopolistic behavior, malicious suppression of Grok Tesla supercomputer chip Dojo 2 can subvert the AI computing power competition? Musk: Do not rule out leasing computing power after "Tesla offers Musk a "$1 trillion" sky-high salary: retain and motivate Elon, let Tesla top the most valuable company" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".
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TSL offers Musk a sky-high salary of "1 trillion dollars": to retain and motivate Elon, making Tesla the most valuable company.
Bloomberg reports that electric car giant Tesla is working on a compensation deal for its founder and CEO Elon Musk that could be worth up to $1 trillion, an amount unprecedented in corporate America. (Synopsis: Compliance pressure + brain drain, Musk's "X super app" dream is going cold? (Background added: Musk: Want to make money? Buy a full GPU! But he hides the "investment steps" in the middle) According to Bloomberg, electric car giant Tesla is working on a compensation deal for its founder and CEO Elon Musk that could be worth up to $1 trillion, an amount unprecedented in corporate America. The plan will not only provide Musk with a huge financial return, but will also increase his voting rights in the company to at least 25% to ensure that he continues to lead Tesla into its future goals. The highly anticipated proposal aims to motivate Musk to continue leading Tesla for years to come, but it also sets a series of challenging goals that Musk needs to achieve in order to get paid in full. According to Tesla's proxy statement filed today (5), the plan is a 10-year plan with 12 phases of share grants, with a total value of $1 trillion if Musk achieves all performance goals. Specifically, Musk will receive a 1% equity award for every $500 billion increase in Tesla's market capitalization, which will increase the company's market value from about $1 trillion today to at least $8.5 trillion. In addition, Musk needs to meet operational goals, including expanding the robo-taxi business, achieving cumulative production and delivery of 20 million vehicles, meeting adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) metrics, and launching new products such as "1 million robo-taxis in commercial operation" and "delivery of 1 million AI robots." The document also states that Musk must participate in the board's framework for developing a long-term CEO succession plan to receive rewards for the final two phases. In this regard, Tesla said in the shareholder letter, through Chairman Robyn Denholm and Director Kathleen Wilson-Thompson: "Retaining and motivating Elon is fundamental to Tesla's achievement of these goals and becoming the most valuable company in history." In addition, Tesla also revealed in the document that it will ask shareholders to vote at the shareholders' meeting on November 6 to decide whether to invest in Musk's artificial intelligence startup xAI. Musk previously raised an informal poll on the social platform X, asking whether Tesla should invest $5 billion in xAI. Controversy over compensation plans However, this new compensation plan is not without controversy. Tesla's 2018 compensation package for Musk, valued at more than $50 billion, was ruled by a Delaware court to be excessive and improperly awarded and must be revoked. In the "Tornetta v. Musk, the judge pointed out that Musk dominated the compensation negotiations and that the board failed to provide legally due information before shareholders voted. The case is still under appeal. Therefore, the proposal of the new plan has raised questions that Musk has too much control over Tesla and that the board of directors may not have enough independence in corporate governance. In addition, Musk's time allocation has also attracted attention, he also manages SpaceX, Neuralink, The Boring Company and xAI, and has been involved in political activities many times, and it is still unknown whether he will be able to complete the board plan. Related reports Musk is furious! xAI accuses former engineers of stealing Grok secrets and cashing out $7 million to jump ship OpenAI Musk threatened to sue Apple: App Store ranking has monopolistic behavior, malicious suppression of Grok Tesla supercomputer chip Dojo 2 can subvert the AI computing power competition? Musk: Do not rule out leasing computing power after "Tesla offers Musk a "$1 trillion" sky-high salary: retain and motivate Elon, let Tesla top the most valuable company" This article was first published in BlockTempo "Dynamic Trend - The Most Influential Blockchain News Media".