Tesla’s board on Friday proposed a pay and ‘performance’ package that could make CEO Elon Musk the globe’s first trillionaire if the US electric vehicle maker meets required milestones under his leadership.
The plan, which runs for 10 years and must be approved by shareholders, provides for the granting of shares to Musk based on Tesla’s market valuation, according to a filing with the US Securities and Exchange Commission.
The maximum number of shares he could receive corresponds to 12 per cent of the company’s current number of shares, but is conditional on ‘stratospheric growth’ and a market valuation of $8.5 trillion.
The company’s current market capitalization is around $1 trillion. Nvidia, currently the world’s most valuable company, is worth around $4 trillion.
‘The preliminary aggregate fair value estimate of the 2025 CEO Performance Award is $87.75 billion,’ the filing says, but that would swell to about $1 trillion if Musk hits all the performance targets and collects restricted shares.Â
