Tesla has proposed a brand new 10-year compensation plan for CEO Elon Musk that may very well be price as a lot as $1 trillion even because the EV maker’s automotive enterprise stumbles and it units its sights on humanoid robotics and AI.
The corporate has tied the compensation to various benchmarks, one among which includes growing Tesla’s total valuation from round $1 trillion to greater than $8 trillion. The plan would grant Musk greater than 423 million extra shares within the firm, boosting his degree of management to round 25%. Musk has beforehand threatened to go away Tesla if he didn’t obtain extra voting energy.
The proposal might be voted on by shareholders at Tesla’s annual assembly, which is scheduled for later this yr. The small print of the plan come only one month after the corporate introduced a $29 billion compensation package deal meant to make up for a plan that was struck down by a decide in Delaware.
Tesla wrote to shareholders in a submitting with the Securities and Trade Fee that the corporate believes the world is at a “vital inflection level” in society, and claims it will probably usher in an period of “sustainable abundance” by “introducing progressive and reasonably priced applied sciences at scale.”
“Tesla will help carry a couple of society that democratizes autonomous items and companies,” the corporate wrote.
Tesla wrote that Musk’s “singular imaginative and prescient” is “important” to “navigating this vital inflection level.” It cited the corporate’s recently-published “Grasp Plan Half IV,” which it says Musk “unveiled,” regardless that the CEO barely acknowledged it, apart from agreeing that it lacked specifics.
