Tesla’s The Board proposed a compensation package for the CEO ELON ALMIZCLE That would catapult the wealth of the technological entrepreneur above $ 1 billion if the company meets a set of rigorous reference points during the next decade, according to a presentation of values on Friday.
Musk would fall on approximately $ 900 billion for the duration of the agreement, which makes it the best compensated CEO ever registered.
The complete compensation would only be delivered if the musk bovele to the company of its present value of $ 1.1 trillions to $ 8.5 billion, a figure that exceeds the current market values of Meta, Microsoft and Google-Parent Alphabet, the presentation says.
The compensation package also includes a set of production objectives, including one million robotaxis in commercial operation and the delivery of one million humanoid robots in the next 10 years. The compensation proposal requires the approval of Tesla’s shareholders.
Musk, considered the richest person in the world, currently has a net worth of approximately $ 430 billion, according to Forbes. If I received the full payment package, Musk would become the first trillionaire in the world.
A detailed set of compensation sections and reference points of the company would help ensure that Musk remains in Tesla during a long-term period and aligns its performance with the financial success of the company, said the members of the Board Robyn Denholm and Kathleen Wilson-Thompson in a letter to the Tesla shareholders.
“Tesla currently does not have a long-term performance award from the CEO to retain and encourage Elon to focus their energies in Tesla and take us through this crucial moment in our history. It’s time to change that,” Denholm and Wilson-Thompson wrote.
Seth Goldstein, an analyst at Morningstar’s research firm that verified an ABC news estimation of the potential value of the compensation proposal, said the payment plan would help guarantee Musk’s continuous approach in Tesla.
“Reward to Musk for the cultivation of the market capitalization of Tesla and deliver strong returns of the shareholders,” Goldstein said. “This eliminates a short -term risky risk for action if Musk will leave Tesla.”
The Tesla CEO, Elon Musk, is shown when he attends at the beginning of the production in “Gigafactory” of Tesla on March 22, 2022 in Gruenheide, southeast of Berlin.
Patrick Pleul/Pool/AFP through Getty Images
The payment package would also increase the participation of Musk’s property in Tesla, which gives it greater control over the company, said Goldstein. Musk has achieved greater property participation.
The company’s new compensation package reaches the previous Musk payment plan remains in the legal limbo.
Last year, a delaware judge twice eliminated a payment package of $ 50 billion for Musk presented by the company in 2018.
Foreign Minister Kathaleen McCormick of the Chancellery Court, which litigates the corporate governance litigation for companies incorporated in Delaware, Initially, he declared that the negotiations surrounding the package had been inappropriate, due to the lack of independence between the members of the Board and the problematic influence by Musk on those negotiations.
In a second decision, McCormick decided that an additional shareholder voting on the compensation package, even if done with full knowledge of the initial problems that surround the negotiation of the agreement, could not undo those problems. Musk has appealed the failure.
Tesla’s profits fell 16% for a three -month period that ended in June that was overlapping with the end of Musk’s time as a “special government employee” With the Trump administration And his consequent public shock with President Donald Trump, showed a profit launch in July.
Losses marked the second consecutive quarterly revenue for the company.
Musk’s work with the Trump administration, which ended in May, triggered demonstrations in Tesla dealers around the world in protest of his effort to reduce government spending as the leader of the Government’s efficiency department.
In a gain call with analysts after the results of the second quarter, Musk asked his company control, that an analyst from Morgan Stanley said it was 13%.
“As I mentioned before, I think my Tesla control should be enough to make sure it goes in a good direction, but not so much control that I cannot be expelled if I go crazy,” Musk said joking.
