‘Yes, you read that correctly’: Tesla pay committee pitches $1 trillion pact to keep Elon Musk as CEO for long term
When the Tesla Board of Directors revealed the latest executive compensation plan for CEO Elon Musk on Friday, it was not just another line in the agent file. It was a theater work or challenge. After two previous wages deals on Musk- the richest man in the world, worth hundreds of billions-it was alternately dismantled under legal pressure and shareholders, and then criticized greatly, the company again pays the boundaries of corporate governance again next December.
Tesla told the file contributors to the Securities and Stock Exchange Committee that the latest payment package in Musk worth $ 29 billion was accompanied by a statement that “the work was ongoing” by the Special Committee that resides compensation for Musk. The council-with Elon and his brother, Kimal, recommended that from this process-to the “long-term executive compensation strategy”, which could reach $ 1 trillion.
Then the Special Committee confirmed what luckAmanda Girut said: The package of $ 29 billion was not directly linked to the performance, and that this was the exact opposite. “Yes, I have read it correctly,” the committee told the shareholders. “In 2018, Elon had to grow billions in 2025, he had to grow Tesla by a trillion – accurately, he must create approximately 7.5 trillion dollars valuable for shareholders in order to receive the full prize.” The committee also said that this award is “unique challenges” to direct Tesla through a new stage of unprecedented growth, while keeping driving for many years to come.
The past of pushing musk
Elon Musk’s relationship with payment firmness has always been strange through traditional companies’ measures. Unlike the salaries and heavy cash rewards that create most of the CEO contracts, Musk has repeatedly connecting Tesla to destroy aggressive features.
In 2012, the Tesla Board of Directors made a deal based on the obstacles to production and the stock price. At that time, it seemed bold. Tesla was still a specialized manufacturer producing tens of thousands of cars. When these goals were eventually achieved, the payment package delivered dozens of millions of dollars in options – at once to win and dispel the Tesla shareholders who saw their stocks double.
Then came in 2018: a plan that includes $ 46 billion in winning a possible grand prize over a set of operational standards and the goals of the strategy evaluation. The skeptics mocked, yet musk struck many of these goals, and Tesla pushed through the evaluation threshold trillion dollars in 2021. For fans, Musk’s campaign was proven. For critics, governance – a council in Thral to the CEO.
Indeed, in January 2024, a judge in Dilayer dropped this arrangement worth $ 56 billion, citing conflicts of interests in the board of directors (including his brother, Kimal) and lack of sufficient oversight. The ruling fell as a symbolic reprimand of musk control over Tesla, and a warning about the transgressions of the Silicon Valley Worship. The second attempt to review the package – the “Plan B” was canceled, as it was unofficially known – by the Dilayer judge about a year later. Throughout the year, angry musk has been paid from its inclusion in Delaware.
On the agent on Friday, the committee said it had explored many alternatives, but in the end it decided to build on the controversial 2018 package. The new goals of Musk include the modified EBITDA goals (up to 28x higher than the teacher 2018, for the committee) and new products, including one million robots in commercial operation and delivery of 1 million robots of artificial intelligence.
Violent reaction, loyalty, and musk dilemma
The Tesla plate found itself besieged in a dilemma: Musk is simultaneously the greatest assets of Tesla and the greatest danger. The unusual height of the company from the car maker to a global power in the field of sustainable energy and transportation may be fed by its uncomfortable ambition and its strange ability to attract capital. It completely embodies the Tesla brand that investors and customers alike mix the company’s path itself.
But this force comes with fragility. MUSK Long List of Side Projects – SPACEX, X, Neuralink, recently launched XAI – accusing Tesla risks a neglected child. At the same time, he brought his mercury style and general disputes, from fiery storms on social media to clashes with the organizers, fluctuating to Tesla shares and reputation.
The trillion -dollar plan is quieter and more existential: Can Tesla really outperform musk? For more than a decade, his vision, the appetite for risk and his loud style was the one that determined the company. However, most companies ’giants ultimately ripen beyond their foundational personalities, and to turn power towards institutional structures and professional administration.
Once again, the Tesla plate stood up to continuity, betting that the bullish trend in locking musk is in the superiority of a disturbance aside. However, the attractiveness of Tesla has always rested in its unbearable possibilities. The company, which has now been rejected, is the future of global transportation. The CEO once believed that the reckless became one of the richest men alive. And the return of the payment package once cannot be imagined to play – only now, the number is no longer billions, but a trillion.
For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.
2025-09-05 12:47:00
