Tesla has proposed a brand new 10-year compensation plan for CEO Elon Musk that might be price as a lot as $1 trillion even because the EV maker’s automotive enterprise stumbles and it units its sights on humanoid robotics and AI.
The corporate has tied the compensation to quite a lot of benchmarks, considered one of which entails rising Tesla’s total valuation from round $1 trillion to greater than $8 trillion. The plan would grant Musk greater than 423 million extra shares within the firm, boosting his stage of management to round 25%. Musk has beforehand threatened to go away Tesla if he didn’t obtain extra voting energy.
The proposal shall be voted on by shareholders at Tesla’s annual assembly, which is scheduled for later this yr. The main points of the plan come only one month after the corporate introduced a $29 billion compensation bundle meant to make up for a plan that was struck down by a choose in Delaware.
Tesla wrote to shareholders in a submitting with the Securities and Change Fee that the corporate believes the world is at a “important inflection level” in society, and claims it could possibly usher in an period of “sustainable abundance” by “introducing progressive and inexpensive applied sciences at scale.”
“Tesla might help convey a few society that democratizes autonomous items and companies,” the corporate wrote.
Tesla wrote that Musk’s “singular imaginative and prescient” is “very important” to “navigating this important inflection level.” It cited the corporate’s recently-published “Grasp Plan Half IV,” which it says Musk “unveiled,” regardless that the CEO barely acknowledged it, apart from agreeing that it lacked specifics.