Tesla, the electric vehicle (EV) and clean energy company, is urging its investors to approve a $47 billion pay package for its CEO, Elon Musk. The package, which was approved by Tesla’s board of directors in 2018, ties Musk’s compensation to the company’s market value and operational milestones.
Under the terms of the package, Musk is eligible to receive options to buy 1% of Tesla’s outstanding shares at a set price, as long as the company reaches certain market value and operational targets. The targets include increasing Tesla’s market value to $650 billion, which is more than double its current value, and achieving certain operational milestones, such as producing 20 million vehicles per year.
The package is one of the largest in corporate history and has sparked controversy among investors. Some investors have criticized the package as being too generous, arguing that it is not aligned with the company’s long-term interests. They argue that the package could lead to short-term decision-making and could result in Musk receiving a disproportionate amount of the company’s value.
However, supporters of the package argue that it is necessary to keep Musk, who is also the CEO of SpaceX and Neuralink, focused on Tesla. They argue that Musk’s vision and leadership are critical to the success of the company, and that the package is a way to ensure that he remains committed to Tesla.
The package is also tied to operational milestones, such as producing 20 million vehicles per year, which is a significant increase from the company’s current production levels. This means that Musk will only receive the full value of the package if the company achieves these operational milestones, ensuring that the package is aligned with the company’s long-term success.
Tesla has defended the package, arguing that it is necessary to attract and retain top talent. The company has also argued that the package is aligned with the company’s long-term interests and that it will help to drive the company’s growth and success.
The package will be put to a vote at Tesla’s upcoming shareholder meeting, and it remains to be seen how investors will vote. However, given Musk’s track record of success at Tesla, it is likely that the package will receive support from a significant portion of the company’s investors.
