Tesla Board Proposes New Compensation Plan for Elon Musk
Tesla’s board outlines a potential $1 trillion stock-based reward plan over the next decade, tying Musk’s compensation entirely to ambitious growth and profitability milestones.
Fact Check
Multiple provided sources, including the New York Times and CNBC, explicitly mention a 'new compensation plan' or an 'interim pay package' being proposed or awarded by the Tesla board. This action is presented as a response to a Delaware court's decision to void Elon Musk's previous 2018 pay package, making the proposal of a new plan a logical next step.
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Summary
Tesla’s board has proposed a new compensation package for CEO Elon Musk valued at up to $1 trillion in stock-based rewards over the next ten years. The plan eliminates salary and bonuses, instead linking Musk’s compensation solely to achieving significant objectives such as boosting Tesla’s market value and profitability. The board emphasized the plan is designed to align Musk’s incentives with the interests of Tesla’s shareholders, though the scale of potential payout is likely to renew debate over his earnings.
Terms & Concepts
- Stock-Based Rewards: Compensation given in the form of company shares or options, aligning executive or employee incentives with shareholder value.