Tesla Proposes Massive Pay Deal for CEO Elon Musk

Tesla's board of directors is urging shareholders to give the green light to an enormous compensation plan for Elon Musk—the electric car company's CEO—that could ultimately total $1 trillion over ten years. This represents an unprecedented level of corporate compensation.

As outlined in a recent announcement, the board intends to grant Musk around 423 million shares. Currently, these shares hold a market value of $143 billion. However, Musk will gain this sizeable stock bonus only if Tesla achieves specific performance targets related to profitability, production, and company valuation.

For Musk to secure the entirety of the bonus offer, Tesla's market value must skyrocket to $8.5 trillion within a decade—roughly eightfold its present valuation. If successful, the award could be valued at more than $1 trillion.