Tesla shareholders have approved a $1 trillion bonus package for CEO Elon Musk today. The approval was given after receiving the approval of 75% of shareholders in a vote held this week.
This bonus is given to Musk as an incentive to ensure that he remains Tesla CEO for another 10 years by achieving several goals set during that period. Tesla's board of directors proposed this bonus package last September.
This $1 trillion bonus 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 goals that Musk needs to achieve include;
Produce 1 million Cybercab self-driving taxis for commercial purposes.
Produce 1 million Optimus robots also for commercial purposes.
Increase Tesla's profits to $400 billion from $17 billion now.
Achieve 20 million EV deliveries
Over the course of this 10-year period, Musk will not receive any salary or cash bonuses from the company. This considerable compensation offer will make Musk the first person to reach trillionaire status. He is currently the richest person in the world with a fortune of $491 billion with his closest challenger Larry Ellison "only" having $298 billion.
Although this compensation offer is lucrative, it comes at a time when Tesla is facing various issues with several top executives leaving the company and their EVs in the world market falling sharply due to increasing competition from other EV companies.
