Tesla Proposes Record Compensation Plan for Elon Musk, Tying Pay to Ambitious Milestones

Tesla's board has proposed a compensation package for CEO Elon Musk that could make him the world's first trillionaire. The plan ties Musk's pay to Tesla stock and requires him to achieve ambitious milestones, including deploying one million autonomous taxis, introducing one million humanoid robots, and lifting annual operating profit to $400 billion. Shareholders will vote on the plan at the annual meeting on November 6. If successful, Musk's stake could nearly double to 29%, giving him control. Critics argue Musk has been distracted by other ventures, but the board insists his leadership is crucial for Tesla's growth.

Tesla's board has proposed a landmark compensation package for CEO Elon Musk that could potentially make him the world's first trillionaire. The package, to be voted on by shareholders at the annual meeting on November 6, ties Musk's pay to Tesla stock and requires him to achieve ambitious milestones [1].

The proposal, if approved, would grant Musk up to $1 trillion over 10 years if he meets targets such as deploying one million autonomous taxis, introducing one million humanoid robots, and lifting annual operating profit to $400 billion. All compensation would be in the form of Tesla shares, increasing Musk's control in the company to nearly 29% [1].

The proposal comes amidst Musk's growing influence over other ventures, including SpaceX, xAI, Neuralink, and the Boring Co. Critics argue that Musk's focus has been divided, but the board maintains that his leadership is crucial for Tesla's growth [1].

If successful, Musk's stake in Tesla could nearly double, giving him significant control over the company. The proposal underscores the board's belief in Musk's ability to drive Tesla's growth and maintain its position as a leading automaker in the electric vehicle (EV) market [1].

The compensation package is not without controversy. Critics, such as New York City's comptroller Brad Lander, argue that the package rewards Musk at investors' expense. However, proponents of the proposal note that tying key leadership rewards to stretch goals can motivate exceptional performance [1].

Tesla shares have seen mixed performance this year, falling 16% despite Musk's ambitious growth plans. The stock's volatility reflects the challenges and opportunities faced by the EV industry and Tesla's position within it [2].

References:
[1] https://www.entrepreneur.com/business-news/tesla-offers-elon-musk-record-1-trillion-pay-package/496761
[2] https://www.cnn.com/2025/09/05/business/elon-musk-tesla-new-pay-package