Tesla’s board is asking shareholders to approve a new pay package for CEO Elon Musk that could be worth up to $1 trillion in a decade, representing one of the richest compensation packages in corporate history.
According to a regulatory filing published Friday, the electric car maker’s board wants to award Musk about 423 million shares, which today have a value of $143 billion, if the company hits certain profitability, production and market capitalization milestones.
To earn the full pay package, Tesla would have to reach a market cap of $8.5 trillion — about eight times its current value — in 10 years. At that level, the stock awarded to Musk would be worth more than $1 trillion.
Tesla would also need to hit certain operational targets for Musk to collect the full pay package. Those include delivering 20 million vehicles; producing 1 million of the automaker’s self-driving “robotaxis”; and manufacturing 1 million of the company’s humanoid robots, dubbed Optimus, which are currently under development.
The entrepreneur’s previous compensation has drawn legal challenges. In 2018, Tesla investors filed a lawsuit challenging Musk’s $56 billion pay package, alleging that he and the company’s board had breached their fiduciary duties. In December, a Delaware judge ordered the company to revoke that award.
In August, Tesla said it was granting Musk shares totaling around $29 billion.
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
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