STORY: Tesla’s board has proposed a $1 trillion compensation plan for CEO Elon Musk.
It would be the largest corporate pay package in history.
And underscore the hold Musk has over the carmaker as it attempts to transform into an AI and robotics powerhouse.
The world’s richest person has consistently said he needs more of a stake in the company.
Even as a legal battle over his 2018 pay package – then valued $56 billion – continues.
The newly proposed award is roughly 18 times the size of the contested plan and close to the company’s current market valuation.
Tesla’s board earlier this year approved an interim compensation package for Musk worth about $29 billion in restricted stock.
It aims to keep him at the helm through at least 2030.
The new plan highlights Tesla’s reliance on Musk as it faces slowing EV demand.
As well as rising competition from Chinese rivals and pressure to deliver on its AI ambitions.
Supporters of Musk’s enhanced pay package have argued that his compensation plans have aligned his incentives with long-term growth.
Meanwhile critics warn of potential dilution and governance risks.
