Tesla Board Offers $1 Trillion Bonus for Musk if Goals Are Achieved

New York — Tesla has announced an unprecedented compensation package for chief executive Elon Musk, possibly worth over $1 trillion in the event that he reaches a series of lofty goals within the next ten years.

Under the plan, Musk would not get a salary or bonus. Instead, he would be given stock in 12 tranches, each based on both market capitalization and operating goals. The first tranche demands that Tesla double its market cap to $2 trillion, while the last milestone sees a valuation of $8.5 trillion, well above today's richest company, Nvidia.

Operational goals involve selling 12 million Tesla cars, manufacturing a million AI robots, and doubling up on one of the firm's profitability measures by 24 times. The plan came after a U.S. court invalidated Musk's previous $50 billion pay package as biased against shareholders, although Musk last received $29 billion worth of shares under said deal before it was invalidated.

Tesla board chairwoman Robyn Denholm supported the revised proposal, informing investors: "Growth that might seem impractical today can be made possible through new ideas, improved technology and increased innovation. Holding on to and encouraging Elon is crucial to Tesla's success in these objectives and being the greatest company ever.

Critics did question its size and timing, though. Dan Coatsworth, a director of investment analysis at AJ Bell, described the award suggested as "beggars belief," claiming that Musk is in charge of "a company that has lost its lead, is being surpassed by competitors, and whose brand is being damaged by his behavior outside Tesla.

The offering arrives as Tesla is experiencing its sharpest sales drop in a decade, as competition rises from lower-priced Chinese makers. Last month, news indicated the board had mused about Musk's future at the company, as he has been criticized for wading into politics and pursing other business interests.

Investors will get the chance to vote later on whether they want to approve the package, which, if successful, would make Musk not just the world's richest man but also the biggest pay deal recipient in corporate history.