Introduction to Elon Musk’s Potential Pay Award
The richest man in the world, Elon Musk, could be in line for a pay award of around $1 trillion over the next decade. This proposal is part of an effort by his electric car company, Tesla, to pay him in shares if he achieves ambitious goals to increase the market share of Tesla, sales, and company value.
The Proposal Details
As part of the proposal, Mr. Musk would not receive a salary or bonus but would be awarded company shares if he meets specific targets. These targets include increasing Tesla’s market value to $2 trillion, almost double its current value, and delivering 20 million vehicles. Over the next ten years, Tesla would need to have a value of around $7.5 trillion, almost eight times its current value.
Challenges Ahead
However, Tesla has regularly missed sales goals and is facing challenges with plans to start a robotaxi and supply chain. The company is trying to move beyond the production of electric vehicles and into robotics and artificial intelligence (AI). To obtain the share tranches, Tesla would need to achieve significant milestones, including delivering a million robotaxis and a million artificial intelligence bots.
Conditions for Payment
Mr. Musk must stay in Tesla for at least seven and a half years to receive the shares and 10 years to earn the full amount. The final tranches of the plan also require Mr. Musk to create a succession plan for his CEO role. Additionally, Mr. Musk would receive more voting rights within Tesla as part of the proposed plan.
Investor Approval
Investors will vote on the proposal at Tesla’s annual shareholder meeting on November 6th. This comes after the company board completed a share package worth $29 billion to Elon Musk last month, following a court blocking an earlier package worth almost twice as much.
