Elon Musk’s eye-watering new pay revealed
Everyone likes a bonus but how about one that could make you a trillionaire? That’s what Tesla is pushing for with a new deal for Elon Musk.
Tesla unveiled a staggering new pay package for CEO Elon Musk that could reach an unprecedented $US1 trillion — potentially reigniting one of the corporate world’s fiercest battles over executive compensation.
The 10-year plan, disclosed in a financial disclosure to the US Securities and Exchange Comission on Friday, ties Mr Musk’s payout to a dozen milestones, including growing Tesla’s market value more than eightfold to $US8.5 trillion ($A12.90 trillion) and hitting ambitious targets in robotaxis, robotics and artificial intelligence reports the New York Post.
Tesla is currently worth about $US1.09 trillion ($A1.65tn).
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If Mr Musk hits every benchmark, his stake would climb to at least 25 per cent of the company, giving him roughly 29 per cent voting control, according to the filing seen by Bloomberg News.
“Simply put, retaining and incentivising Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history,” board chair Robyn Denholm and director Kathleen Wilson-Thompson wrote in a letter to shareholders.
The plan arrives after a Delaware court in January struck down Musk’s record $US56 billion ($A85bn) compensation package approved in 2018, calling it unfair and riddled with conflicts of interest.
Chancellor Kathaleen McCormick ruled that Mr Musk wielded undue influence over Tesla’s board and that shareholders weren’t properly informed about the process.
Tesla is appealing that decision to the Delaware Supreme Court, with oral arguments set for October 15. In the meantime, Mr Musk received an interim stock award in August valued at about $US30 billion ($A46bn).
$1.5 trillion
The new package, with a base grant valued at $US87.8 billion ($A133bn), would swell toward $US1 trillion ($A1.52 tn) if Mr Musk clears every hurdle.
Targets include selling 20 million vehicles, putting one million robotaxis in service, delivering one million humanoid robots and boosting adjusted profits before tax and other metrics to $US400 billion ($A607 bn).
Mr Musk, 54, has pushed the board for a new deal, warning he could pursue AI and robotics ventures outside Tesla unless he secured around 25 per cent voting control.
Earlier this year, his artificial intelligence start-up xAI absorbed social media platform X, formerly Twitter, which Mr Musk purchased by selling a chunk of Tesla stock.
The board also disclosed a shareholder proposal to consider Tesla taking a stake in xAI, an idea Mr Musk has floated publicly.
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While the filing touts Mr Musk’s leadership, it acknowledges his “high public profile attracts significant scrutiny” and that some question whether his outside interests and political activities distract from Tesla.
Those distractions have been front and centre.
Mr Musk was President Donald Trump’s biggest financial backer in the 2024 election and briefly joined efforts to reshape the federal government, sparking backlash that included vandalism at Tesla stores and charging stations.
Tesla’s vehicle deliveries fell 1 per cent in the first half of this year, among its worst results in years.
In May, Mr Musk stepped down from his government role and vowed to spend more time at Tesla. The company soon launched its long-promised robotaxi service in Austin, Texas, which Mr Musk has pitched as the cornerstone of its future business.
Tesla shares rose 1.9 per cent on Friday morning but remain down 16 per cent this year. The stock reached a peak valuation of $US1.5 trillion ($A2.28 tn) in late 2024.
The shareholder vote on Mr Musk’s new package will take place at Tesla’s annual meeting in November. If approved and fully earned, it would represent the largest payout ever awarded to a corporate executive, dwarfing all prior records.
The Post has sought comment from Tesla and Musk.
This story was first published in the New York Post and is is reproduced with permission.
