Pecohub Tesla Inc. has proposed a new long-term compensation package for Chief Executive Officer Elon Musk, which could be valued at approximately $1 trillion, according to the company’s Friday proxy filing.
If approved, the plan would mark one of the largest executive pay arrangements in corporate history.
The proposed package is designed to retain Musk as CEO over the next decade, with payouts tied to a series of ambitious performance milestones.
These benchmarks include expanding Tesla’s emerging robotaxi business and increasing the company’s market value to at least $8.5 trillion, a substantial rise from its current market capitalization of roughly $1 trillion.
Under the terms of the proposal, Musk could receive additional Tesla shares that would elevate his stake in the company to at least 25%. Musk has previously indicated that he aims to hold a stake of this size. The filing also outlines an interim stock award granted in early August, valued at around $30 billion, as the company pursues alternative ways to compensate its CEO while a 2018 package valued at more than $50 billion remains under appeal in Delaware courts.
The incentives in the proposed plan are intended to ensure Musk remains focused on Tesla amid the company’s expansion into new areas, including robotics and artificial intelligence. Additionally, the filing includes a non-binding shareholder proposal suggesting that Tesla take an equity stake in Musk’s xAI startup, a venture he has publicly discussed.
Musk, who has served as Tesla’s CEO since 2008, oversees several other companies, including SpaceX, Neuralink, xAI, and the Boring Co. Despite his multiple commitments, Musk has consistently stated his intention to remain at the helm of Tesla in the coming years. In an interview with Bloomberg in May, he reaffirmed his plan to lead the automaker over the next five years.
