Tesla's board of directors has proposed a $1 trillion (~RM 4.22 trillion) compensation plan for CEO Elon Musk. This compensation is given to Musk as an incentive to ensure that he remains Tesla CEO for another 10 years by achieving several set goals during that period.
This $1 trillion compensation is in the form of 12% of Tesla shares if he manages to increase the company's market value to $8.6 trillion within a decade. At this time, Tesla's market value is around $1.1 trillion. If Musk succeeds in achieving the target, he will hold almost 29% of the company's shares.
Other targets that Musk needs to achieve include;
Produce 1 million Cybercab self-driving taxis for commercial purposes.
Produce 1 million robots also for commercial purposes.
Increase Tesla's profits to $400 billion from $17 billion now.
Reaching 20 million EV deliveries
Over the course of 10 years, Musk will not receive any salary or cash bonuses from the company. This substantial compensation offer would make Musk the first person to reach trillionaire status. He was at the time the world's richest person with a fortune of $437 billion, with his closest challenger Larry Ellison "only" having $283 billion.
While this compensation offer is lucrative, it comes at a time when Tesla is facing various issues with several top executives leaving the company and the Dojo supercomputer team that trained FSD self-driving cars has been disbanded. Meanwhile, their EV sales in the global market have fallen sharply due to competition from Chinese companies and Musk's political stance.