Tesla is offering Elon Musk an unprecedented compensation package, tied to a surge in the company’s stock value. The plan aims to incentivize continued leadership and growth at Tesla as the electric vehicle market faces challenges from competition and shifts towards artificial intelligence and robotics. 8,500 billion dollar valuation cap sets the stage for Musk to receive up to 12% of Tesla’s capital over a ten-year period.
A complex structure based on stock performance thresholds grants shares linked to the company’s value. This plan is significantly larger than its previous program, which was canceled in 2024 by Delaware courts due to misleading information, despite shareholder votes in favor. It reflects Tesla’s strategic dependence on Musk and his leadership during a period of change within the company.
The proposal has generated mixed reactions from shareholders. Some view it as an alignment with long-term success for the company, while others criticize the compensation’s astronomical nature considering recent losses and potential dilution of shareholder equity. The plan is subject to a shareholder vote scheduled for November, leaving experts and investors closely watching its progress.