Tesla proposes record $1 trillion pay package for Elon Musk - but here's the condition
If fully realized, the award would significantly increase Musk's current 13% stake, bolstering his voting power and raising fresh debates over governance and succession planning.
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Tesla Inc. has proposed a staggering $1 trillion compensation package for CEO Elon Musk, in what would be the largest corporate pay deal in history, according to media reports.
The plan, outlined in a regulatory filing, reflects the company's deep reliance on Musk as it pushes beyond electric vehicles into artificial intelligence and robotics.
The proposal comes even as Musk's 2018 pay package, valued at $56 billion, remains entangled in legal battles, the report added. The new award - nearly 18 times larger - would vest in tranches tied to Tesla's market capitalization and operational milestones, including mass production of robotaxis and humanoid robots.
Tesla stressed that Musk would receive no salary or cash bonus, with the entire package linked to performance, mirroring the structure of his earlier deal.
If fully realized, the award would significantly increase Musk's current 13% stake, bolstering his voting power and raising fresh debates over governance and succession planning.
According to media reports, the board justified the extraordinary proposal by stating that "traditional compensation packages" for executives at other companies were not appropriate for Musk. The plan was reviewed by a special committee of independent directors and will be put to shareholder vote in November.
The move comes amid intensifying industry headwinds: slowing global EV demand, growing competition from Chinese automakers, and mounting pressure for Tesla to deliver on its AI-first vision.
Earlier this year, the board approved an interim $29 billion restricted stock package to secure Musk's leadership through at least 2030, the reports added.
Tesla, which recently reincorporated in Texas, is also appealing a Delaware court ruling that invalidated Musk's 2018 package. The company said the new plan incorporates shareholder feedback and stronger governance safeguards.
