Tesla has unveiled a bold new compensation plan for its CEO, Elon Musk, which, if approved, could potentially make him the world’s first trillionaire. The proposal is expected to be submitted for shareholder approval in November.
The package, however, comes with ambitious conditions. Musk must drive Tesla’s market valuation into the multi-trillion-dollar range over the next decade to unlock the rewards.
Social Media Reactions
The announcement triggered a wave of reactions online, ranging from humor to criticism.
- One user joked, “I guess he will use that to go to Mars.”
- Another wrote, “Ever thought why the rich get richer? They make more than they spend and invest the rest, while the poor fall into debt.”
- A third quipped, “Yea! He’s still gonna be underpaid!”
- A more critical voice added, “Employees are overworked, investors are losing money, yet Musk gets a payday bigger than some countries’ GDP.”
Compensation Details
According to reports, the plan would award Musk up to 12% of Tesla’s stock, worth approximately $1.03 trillion, if the company reaches a market value of $8.6 trillion. This means Tesla would need to grow its valuation by nearly $7.5 trillion in the coming decade.
Expert Opinions
The proposal has also sparked discussions among analysts and corporate governance experts.
- Adam Sarhan, CEO of 50 Park Investments, remarked, “While performance-based compensation isn’t new, the sheer scale of this plan sets a record for CEO incentives and will dominate boardroom debates worldwide.”
- Brian Quinn, professor at Boston College Law School, commented, “This is a ridiculously large pay package. It raises serious questions, but Musk’s move to relocate Tesla from Delaware to Texas last year was likely aimed at avoiding such scrutiny.”