Musk is about to receive 1,000 billion USD

Elon Musk was offered a record-high compensation package. Photo: Bloomberg .

Tesla has just announced a new compensation plan for CEO Elon Musk, with an estimated value of about $ 1,000 billion . This is an unprecedented compensation package in the history of American business, designed to keep the South African-born billionaire to continue leading the electric car company for the next decade.

The deal will last 10 years and is tied to a series of ambitious goals, according to Tesla’s proxy filing on September 5. Musk will only receive the full bonus if Tesla hits milestones such as expanding its robotaxis business and raising its market capitalization to at least $8.5 trillion , up from about $1 trillion today.

If completed, the additional shares would increase Musk’s ownership of Tesla to at least 25%, a level he has publicly stated his desire for.

The new plan comes after a 2018 compensation package worth more than $50 billion was rejected by a Delaware court earlier this year. Tesla is appealing the ruling and is exploring other options to keep Musk motivated, including an interim stock award of about $30 billion that was approved in early August.

The incentives in the $1 trillion package are expected to keep Musk focused on Tesla as the company expands into new areas like robotics and AI. The proxy filing also said the electric car company will put shareholders to a vote on a stake in xAI, the startup Musk founded.

The new deal also cements Elon Musk’s central role at Tesla, despite running several other companies. In addition to being CEO of Tesla since 2008, Musk currently holds leadership roles at SpaceX, xAI, Neuralink, and the Boring Company. In an interview with Bloomberg in May, he confirmed that he would continue to be involved and directly lead Tesla for at least another five years.

Tesla’s stock, however, is under pressure. As of September 5, TSLA was down 16% year-to-date. Analysts say the huge compensation package may spark debate among shareholders, but it also reflects the board’s efforts to retain the most important figure in the world’s largest electric car company.

Source: https://znews.vn/musk-sap-nhan-1000-ty-usd-post1582877.html