Tesla Inc. has unveiled a new long-term compensation package for its Chief Executive Officer, Elon Musk, which could be worth as much as $1 trillion, according to a proxy filing released on Friday.
If approved by shareholders, the deal would become one of the most significant executive pay packages in corporate history, surpassing all known precedents for CEO compensation in the global business landscape.
The proposal is structured to retain Musk as Tesla’s chief executive over the next decade, while directly linking payouts to the company’s performance. According to the filing, the package will be granted in tranches, with Musk’s earnings tied to a series of ambitious operational and market capitalization milestones. These targets are expected to include major growth in Tesla’s market value, revenue expansion, profitability, and continued leadership in the electric vehicle and clean energy sectors.
Tesla’s board of directors said the plan reflects both Musk’s pivotal role in the company’s transformation and its confidence in his vision to guide the automaker through the next stage of innovation. “This package is not guaranteed compensation,” the filing emphasized, noting that Musk would receive no base salary or cash bonuses. “His rewards will depend entirely on Tesla achieving sustained, exceptional growth.”
The announcement has sparked debate across the financial and corporate governance community. While supporters argue that Musk’s leadership has been instrumental in Tesla’s rise to become the world’s most valuable carmaker, critics are likely to question whether such an unprecedented figure is justifiable, especially at a time when executive pay practices face increased scrutiny.
Shareholders are expected to vote on the proposal at Tesla’s upcoming annual general meeting. If approved, the deal would secure Musk’s leadership at Tesla through at least the mid-2030s, while setting new benchmarks for executive compensation worldwide.
