Elon Musk has the ability to do truly extraordinary things, a unique example of which is receiving a huge salary offer from electronic car manufacturer company tesla.on Friday Tesla new plan for Musk that would see him pay up to $1 trillion, making him the first person to earn a trillion-dollar salary.
The main purpose of this salary is to get Elon Musk to refocus on their company, because ever since Elon Musk joined the White House he has promised to start a political party and threatened to move elsewhere if he does not get 25% of vote, As a result he was offered such a high salary to prevent Elon mask and because of his public support.
However, Musk will have to meet certain conditions before receiving this salary package. Meanwhile, a court case is underway regarding the old 2018 salary package of $56 billion. The proposed package is 18 times the previous controversial package and is almost equal to Tesla’s current market value.
Tesla’s board says the record-breaking prize will help Musk stay focused and motivated at the company. But critics say, Musk is already the largest shareholder, so he does not lack motivation, but such a large salary package could reduce shareholder ownership and create risks to the institutional governance structure.
Under the proposed package, Musk could acquire a maximum of 12 percent of Tesla shares, worth an estimated $1.3 trillion. However, to obtain this huge amount of shares, Tesla’s market value would need to reach $8.6 trillion in the coming years.
This means Tesla will need to grow its market value by about $7.5 trillion over the next decade. The reward will be earned in stages, with targets set based on the company’s market value and operational milestones. For example: 1 million robotaxis will be launched on the market, 1 million artificial intelligence robots will be sold, and another 12 million Tesla cars will need to be sold.
Tesla said Musk will not receive any salary or cash bonus in this package, but rather it will be entirely performance-based, just like the 2018 package. The board said that if all goals are achieved, Musk’s current 13 percent share ownership will increase further and his control over the company will be strengthened.
Musk recently said that the ‘Optimus’ humanoid robot will eventually account for 80 percent of Tesla’s total market value and help the company reach a value of $25 trillion. Meanwhile, Musk’s political activities, especially his conflict with President Donald Trump and the announcement of the formation of a new political party, the “America Party,” have increased concerns among investors.
The board has taken a stand against a proposal that would have increased the board’s oversight of Musk’s political activities. “It’s clear that Elon is getting what he wants from the board and shareholders,” said Douglas Chia, president of Soundboard Governance. “As ridiculous as it may sound, I’m confident this package will be approved.” Tesla said a special committee of independent directors has reviewed the proposal and it will be put to a vote at its November shareholder meeting.
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