"After two previous pay deals for Musk-the world's richest man, worth hundreds of billions -had been alternately dismantled under legal and shareholder pressure, and then heavily criticized, the company is once again pushing the boundaries of corporate governance with a headline-grabbing target: Musk will earn only if Tesla's valuation surges by at least a factor of eight over the next decade."
"The special committee then confirmed what Fortune's Amanda Gerut reported: that the $29 billion package was not directly linked to performance, and that this was quite the opposite. "Yes, you read that correctly," the committee told shareholders. "In 2018, Elon had to grow Tesla by billions; in 2025, he has to grow Tesla by trillions - to be exact, he must create nearly $7.5 trillion in value for shareholders for him to receive the full award.""
Tesla's board unveiled a new executive compensation plan that requires Tesla's valuation to surge at least eightfold over the next decade before CEO Elon Musk earns substantial pay. The move followed two prior Musk pay deals that were dismantled under legal and shareholder pressure and faced heavy criticism. The board noted that a $29 billion package was accompanied by ongoing work from a special committee and recommended a longer-term compensation strategy that could reach $1 trillion. The special committee confirmed the $29 billion award was not directly linked to performance and said Musk must create nearly $7.5 trillion in shareholder value to receive the full award.
Read at Fortune
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